I have purchased shares of Bharat Forge at Rs 660 considering it to be a reversal. What should I do now?
- Chandrakant Patil
HOLD BHARAT FORGE WITH A STOP LOSS OF RS 595
Bharat Forge is currently trading at Rs 613.55. Its 52-week high/low stand at Rs 799.65/Rs 575.15 made on March 1, 2018 and July 20, 2018, respectively, portraying sudden downfall. The stock attempted a bounce-back after hitting a double bottom pattern at 52-week low level. It breached its major resistances at Rs 669 and Rs 675, but retreated from Rs 692 level, i.e. in-between the 50% and 61.8% retracement of the downward rally from Rs 784 to 52-week low. Considering the weekly time frame, the stock is trailing at its 100-period EMA level and also taken support of an upward sloping trendline level. The oscillators are still tilted southwards, and hence, we suggest you to hold with a stop loss of Rs 595.