Amtek India a company involved in several direct and indirect business from the automobile sector has been a good performer at the Index. Especially the last week saw the stock moving up by 11% to close at Rs.137.5.
The stock was also trading at very high volumes which are more than the average traded volumes of the company. The stock was highly hit in the times of 2008 and ever since then it has not looked back. From 2008 the stock has continuously shown an uptrend in its prices. Looking at the fundamentals and future joint ventures of the business the stock seems to be a good buy at least for a short term investment. It shows a positive outlook for its movement in its short term.
On Friday the stock was touching its long term resistance levels of Rs.140. The weekly relative strength shows a negative divergence signalling a potential trend reversal. In case the stock breaks the Rs.140 mark it is expected that it would reach higher levels in the short term as well as mid term. However in case the stocks breaks from here and fails to go past its resistance of Rs.140 could see the stock crawling back to the Rs.120 or Rs.110 levels. At this levels it could move either ways which is the reason why the levels of Rs.140 is so important for the stock to move northwards.
Bell the Bull says: A break through of the Rs.140 levels can see the stock at Rs.160 in the short term and at levels of Rs.180 in the medium term.