Buy Blue Star, says Hemen Kapadia

Hemen Kapadia, Technical Analyst, chartpundit.com advised buying Blue Star with a target of Rs 331.

Kapadia told CNBC-TV18, "I would like to recommend Blue Star. In fact the stock has given an upward key reversal on a daily chart. There has been significantly higher volume today than the last trading sessions. The stock is oversold and the mandatory round of positive divergences has already begun on the daily charts. In fact we have had 2 rounds of positive divergences indicating that turnaround is close at hand. So the situation is also replicated on the weekly charts. It looks extremely oversold indicating a short term turnaround but possibly a medium term turnaround also. Keeping that in mind, one can buy Blue Star at around Rs 315 with a stoploss of Rs 307 and target of Rs 331."