We recommend a buy in the stock of Nitin Fire Protection Industries from a short-term perspective. It is evident from the charts of the stock that since its March 2009 low of Rs 23, the stock has been on a structural bull-run forming higher peaks and higher troughs.
In February, the stock took support from its long-term base level of Rs 60 and started to trend upwards. The stock has been on a medium-term uptrend since then. It is hovering well above its 50- and 200-day moving averages. Reinforcing bullish momentum, the stock advanced almost four per cent accompanied by above average volumes on Thursday. This up move has breached its near-term resistance at around Rs 109.
Both daily as well as weekly relative strength indices are featuring in the bullish zone. Likewise, moving average convergence divergence indicators are also hovering in the positive territory indicating upward momentum. Considering that the stock's medium-term uptrend line is intact we are positive on the stock. We anticipate its up move to prolong further until it hits our price target of Rs 114 or Rs 119 in the ensuing trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 109.