Trader's Pick - Bharat Forge Ltd For Target Rs. 587 By GEPL Capital

12-02-2021 01:54 PM | Source: GEPL Capital

Trader's Pick - Bharat Forge Ltd For Target Rs. 587 By GEPL Capital

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Bharat Forge Ltd

About the Company Bharat Forge Limited (BFL) is a Indian multinational company involved in automotives, power, oil & gas, construction & mining, locomotive, marine and aerospace industries. It is part of the Kalyani Group, which is a US$2.5 billion conglomerate with a 10,000 personnel strength global work force. Bharat Forge has signed a joint venture with France-based power generation company Alstom for turbines and generators. Alstom holds 51% of the shares and Bharat Forge 49% in the joint venture. Alstom Bharat Forge Power Ltd started its manufacturing facility at Sanand in Gujarat.

Points to consider

* The price chart of Bharat Forge has formed a 3.5 month rectangle pattern between 847 and 717. The horizontal boundary of 717 has been tested several times during the course of the pattern.

* A daily close below 695.5 will confirm a downward breakout of the rectangle and will also close below the long term 200 DMA.

* The stock can be sold on breakout with a possible price target of 587.

* The initial stoploss maybe placed anywhere above 717. We suggest an initial stoploss of 756 which can be trailed down if the prices move down.