Buy HDIL With A Target Of Rs 200

HDILMoving Averages crossover : The combination of medium and long term moving averages used to track the trend are in a bullish crossover. This is a very positive sign. This suggests that the downsides to this stocks may be minimal from current levels and the medium term trend is likely to remain positive.

Positive Divergence in Momentum Indicator: The medium/long term momentum (MACD) indicator has been making a higher top and higher bottom formation. Price wise though, this stock has made a lower top and a lower bottom in the same time period. This indicates a positive divergence. Such a divergence normally occurs before a sustainable rally and thus it could lead to a trend reversal in the medium term.

Technical Commentary/ Observation: Bullish moving average crossover along with the strength in momentum indicators and oscillators augur well for this stock from a medium term perspective. Investors can buy this stock from a three-four month time frame with target of around Rs 195-200.