Today’s pick is BOSCHLTD [stockquote]BOSCHLTD[/stockquote]. The stock started the year with a double bottom around Rs. 7,500 levels and started its up-move. After moving in a range till September, it saw a bullish breakout to reach 52 weeks high of Rs. 9,600 level in January. Since then the stock is on a down-turn and was trading around its support levels of Rs. 8,400 yesterday. In the last three months, the stock moved -9% Vs. -3% of the Nifty’s.
Oscillator RSI and CMO are currently hovering deep inside the over-sold territory, giving out a bullish signal for the scrip. close to over-bought territory. The stock is currently trading at the lower edge of a broad Bollinger bands.
The MACD line and signal line are moving parallel to each other without giving any trend reversal signal. Also, the Long-term GMMA lines are contracted and hence are not suggesting any immediate opportunities.
BOSCHLTD’s average correlation with the Nifty is 0.01 which is positive but weak. The scrip will not be replicating movement of Nifty. [stockquote]NIFTYBEES[/stockquote]
BOSCHLTD has a historical volatility in the range of 0.2 to 0.6. The scrip’s volatility is currently in the lower end of the range.
Given these technicals, we suggest a short-term Buy. A long-term BUY is suggested if the stock holds this support level. It is suggested to have tight trailing stop-losses to book profits in case of a sudden trend-reversal.
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