Bharat Forge – Technically Looks Good From Auto Ancilary Space
Very recently ICICI Direct has posted a research report on Bharat Forge Ltd where they have recommended to BUY this scrip in early January 2017. They are quite bullish on this scrip and thinks that this scrip can do exceptionally well in the year 2017.
While in an interview, Niyati of ICICI Direct has expressed her viewes on Bharat Forge Ltd scrip. She told that this is a bottom up approach to analyse this scrip and this scrip looks quite attractive in current valuations.
ICICI Direct has given a target price of 1195 while the current price is at 940.50 as trading on 24th January 2017. Though in the end of 2016 and in the start of 2017 the scrip was looking subdued but Niyati alerted investors not to worry and she has reiterated that the risk reward ratio seems very favourable at the current valuations. She asked to add this stock in the portfolio for the long term and this is a selective scrip specially for the long term only.
ICICI Direct advised investors not to put large chunk of money in single shot, rather they has advised to buy in small quantities in regular intervals and in all dips. Now why Bharat Forge? The auto sector is a clear outperformer sector of 2016. In this sector TATA MOTORS was a stock that clearly outperformed the index in 2016. But among the midcaps Bharat Forge is the counter that looks quite bullish.
Now watch Bharat Forge Limited weekly charts given above. The counter has made its lifetime high in April 2015 at 1363 and then it started trading in a corrective range. Now the correction seems over and the scrip can be invested for a target of 1195 in the coming 1 year. That is more than 25% profit potential from the current valuation. We recommend to keep this scrip in your watch list and accumulate for handsome gains in 2017.