PINC Research positive on IDFC

PINC Research is bullish on Infrastructure Development Finance Company (IDFC) with a target of Rs 155- 160 in its July 19, 2011 research report.

Price Breakout and Moving Averages: A price breakout appears to have occured above 138. It is also above its important medium term moving average suggesting higher levels in the days ahead.

Positive Divergence in Momentum Indicator: The medium term momentum indicator (MACD) has created a higher top higher bottom in the last six months. Price wise though, the stock price has formed a lower top lower bottom in the same time period. This is a clear anomaly and indicates a strong positive divergence. This is another sign that an impending reversal could be round the corner.

Technical Commentary/ Observation: A price breakout as well as a strong positive divergence indicates that the stock could advance higher in the coming months. Investors can buy this stock from a two -three months time frame with a target of around Rs 155- 160.

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