PINC Research is bullish on Bombay Dyeing and has recommended buy rating on the stock with a target of Rs 460 in its April 20, 2011 research report.
Price Breakout and Moving Average Cross Over: The stock has witnessed a sideways to neutral move over the last few weeks which suggest an accumulation pattern in the short term. The long term moving averages are also on the buy mode. Such a condition may lead to higher prices in the coming weeks.
Momentum Indicator: The medium/long term momentum (MACD) indicator has been exhibiting strength and is indicating a buy at the current juncture. This is another confirmation supporting our hypothesis for a sustainable up move. The chances of a down move look minimal from the current prices.
Technical Commentary/ Observation: Bombay Dyeing has been seeing accumulation at lower levels thus its downside appears limited. Price pattern coupled with the supporting strength from the momentum indicators and oscillators indicate higher prices in the near future. We recommend buying this stock from a two-three month perspective with target of Rs 460.
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