JBF Industries : Buy Recommendation @ Rs 119.9

by khalid on 11/01/2010 · 0 comments

JBF Industries is a diversified manufacturing company, active in yarn spinning and polymers. Research group Business Line recommends to BUY shares of JBF Industries at present price level of Rs 119.90 for a short term horizon.

Recommend Price : Rs 119.90
Target Price : Rs 124.00
Stop Loss : Rs 106.00

It is apparent from the charts that in December 2008 the stock had bottomed out and has since been on a longer-term uptrend, forming higher peaks and higher troughs. While trending upward the stock broke through various key resistance levels. A significant resistance level at Rs 80 turned into a key support level. Taking support at this level in November 2009, the stock resumed its long-term uptrend. The stock’s medium-term trend continues to be up since November. On January 8, the stock gained almost 8 per cent, accompanied with heavy volume, breaching resistance at Rs 110 and is trading way above its 21- and 50-day moving averages. The daily relative strength index is hovering in the bullish zone and weekly RSI also is featuring in this zone. The daily moving average convergence and divergence indicator is steadily heading higher in the positive territory. Considering that the uptrend-line is intact, we are positive on the stock from a short-term horizon. We anticipate the stock to rally until it hits our price target of Rs 124. Traders with short-term perspective can consider buying the stock with Rs 106 as stop-loss.

Stock Info :
Sector : Textiles – Manmade Fibre – PFY/PSF
Market Cap : Rs 696 crores
P/E : 9.13
EPS : Rs 12.25
Face Value : Rs 10.00
52 Week High / Low : 115.70 / 29.00
JBF Industries Ltd. share CMP is Rs 119.90 on 8th Jan 2010

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