Buy Bhushan Steel for target of Rs 1600:IIFL

MUMBAI: IIFL has advised traders to buy Bhushan Steel for target of Rs 1600.

“Buy Bhushan Steel has rallied smartly from a low of Rs 1260 in June 2010 to the present levels. Despite the ongoing volatility in the market, the stock has managed to hold on to the support of its short-term trendline.

On the daily charts, it has formed a pattern of a higher bottom. It is considered as the initial sign of a bottoming out process in the short term. The daily RSI is already in strong buy mode, indicating that the prices are set to rally from the current levels.

The stock is trading above its 200-DMA. A sustained move past the Rs 1537 levels will see the stock heading towards the levels of Rs 1590 in the short term. We recommend traders to buy the stock above Rs 1537 for an initial target of Rs 1600 with a stoploss of Rs 1510,” the report said.

Note: Trading idea valid for time-period of 1-3 days.