Bharat Forge the flagship company of the USD 2.1 billion Kalyani group. It is a leading global full service provider of forged and machined engine and chassis components. Bharat Forge is the largest exporter of auto components from India.
Moving into the technical picture we find that this counter has seen an excellent updrive since its lows in March 09. From the chart we note that prices having bottomed out from its prior razor sharp fall in Dec 08 shifted into a heavyaccumulation phase. Moving out from this phase after some good accumulation prices started to rally well on sustained buying activity. With all dips bringing in fresh buyers, prices grew stronger with each session, bouncing back from all dips and moving to new peaks each time. Moving back to the chart we find that prices managed to hit 50% retracement level of the last falling primary led March 06-Dec 08, around 277 levels around which it also managed tocomplete a nice rounding pattern (orange line). In doing so prices managed to exceed a descending Gann line resistance (green line) but were simply unable to breakout from the accumulation pattern and 50% level. We can see that few attempts have been made so far but none have been so far successful. However prices on the lower side are refusing to move below the downsloping Gann line, using it as a good support region. As long as the higher bottom formation is being maintained then we can hope for a breakout to occur sometime in the near future.
This deep accumulation pattern has its target placed around 480-85 levels, also around the all time high. However as this level seems quite far off from current levels, one can also keep an eye on a closer target around 350 / 395 respectively. With the overall sentiment still looking bullish and no reason to think otherwise, we recommend buying this one above 280.
Souce IDBI
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sir your medium and long term recommendation is very use for me
sir your medium and long term recommendation is very use for me.
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