Buy GMR Infra; target of Rs 40: Aditya Birla Money

Aditya Birla Money is bullish on GMR Infra and has recommended buy rating on the stock with a target of Rs 40 in its June 28, 2011 research report.

“GMR Infra, at crucial convergence support GMR Infra has produced a Hammer Candle stick pattern on weekly chart. The Hammer pattern signifies a weakening in bearish sentiment at important support zone and bulls coming with vengeance to protect important level and recapture the lost ground. A follow up action in terms of a big white candle or a gap-up opening is required to confirm the possible reversal in trend. At such important support zone stock has hit the lower band of the Bollinger band formed a hammer and has also produced a positive divergence with RSI. Momentum indicator like SMI is in buy mode on weekly chart and with yesterdays price action the Daily SMI too has turned positive such dual frame time conversion may just prove right for an up move.”

“This suggests holding hammer lows of Rs 29.90 and then successful breach of the hammer high level of Rs 32.30 can at least take the stock higher towards the middle of the Bollinger band currently placed at Rs 37 levels and possibly further towards the upper band zone of Rs 44 levels. Buy GMR Infra only above weekly hammer high of Rs 32.30 with a closing stop-loss of Rs 30 for a possible target of Rs 40 levels,” says Aditya Birla Money research report.

Source : moneycontrol.com