Positive on Bharat Forge
Bharat Forge Limited (BFL), the Pune based Indian multinational company. It is a technology driven global leader in metal forming having transcontinental presence across ten manufacturing locations. It has several sectors including automotive, power, oil and gas, construction & mining, rail, marine and aerospace. It is world's largest forging company with manufacturing facilities spread across India.
In this company had not given very good results but everybody is bullish on this scrip, why?
Fundamentals of this scrip are always good. But it is big scrip so always you have to take entry on right time and at right place, so u can get maximum benefits. Today we will discuss for this scrip on long term investment,
If we check on monthly chart of Bharat forge it had started long uptrend from oct’2013. When this scrip had given positive crossover of ATR 14,2. After this cross over it has never look back. At that time stock prices were around 280-290 but within 3 years it had given long jump in pricing. In the month of March 2015 it had made high of 1347. After that it had started short term down trend. It had also given negative crossover on ATR14,2 and made low of 682. From this price he took support of EMA50 and start reverse journey. Actually that was the perfect time to purchase this stock but long term investors are always wants to play safe game, so they can wait till positive crossover of ATR14,2. In this month this scrip has given crossover of ATR142 on positive side.
On 9th February BFL had announce quarterly results, those were not so impressive but projection of upcoming tenure is very good. We can see very good buying pressure on this scrip because on the result day it made low of 963 but on second day with double pressure and double enthusiasm it had made high of 1023. After that day it has started to make higher high and continuously going upside.
In this month it might be giving good sign in macd also. Right now macd line are overlapping each other. It might be cross on positive site. Generally I am preferring EMA20 and EMA50 crossover for entry in stock for investment. But in this scrip it is already in positive side.
If you want to do short term investment, you can take exit on 1080/1090 and again look to buy on a fall of about 5% in a very short time or within few weeks. And if you are looking for long term investment than u can buy it and trailing till it gives negative crossover of ATR14,2.
- Anand Singh Gaur
- Sunil Kothari