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Wednesday, May 13, 1998

Bharat Forge: Time to book profit 

Deepak Singh Tanwar  
Bharat Forge's performance on the bourses have been impressive in the last few months. After posting a higher bottom at Rs 56 in the third week of February 1998 (the first bottom was formed at Rs 52 in November last year), the scrip on the Mumbai Stock Exchange has shown a smart jump and within two months reached a high of Rs 98.

However, looking at the current price chart and the positions of different oscillators, the stock is expected to shed a major part of its gain in near future.

The sign of a likely correction is evident from the divergence shown by the 21-day RSI oscillator. A fall in volume further confirms this. Though moving averages are in a positive phase, oscillator indicate weakening position of bulls. As such, profit booking at the current level appears a better option.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.

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