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Escorts Ltd BUY TECHNICAL
CMP: ` 680 (As on 01st Aug 2017)
Buy: ` 680-667 PICK
Target Price: ` 710-730
Stop-Loss: ` 650 Escorts Limited is among India's leading
engineering conglomerates operating in the high
Escorts Ltd growth sectors of agri-machinery, construction &
material handling equipment, railway equipment
4 ARIHANT CAPITAL ¡ AUGUST 2017 and auto components.
The company offers agricultural tractors under
the Farmtrac, Powertrac, and Escorts brands; and
engines for agricultural tractors. It also provides
round and flat tubes, heating elements, double
acting hydraulic shock absorbers for railways
coaches, center buffer couplers, automobile shock
absorbers, telescopic front forks, mcpherson
struts, brake blocks, and internal combustion
engines, as well as various brakes for use in
railway, construction, earth moving, and material
handling equipment. In addition, the company
offers lubricants, such as engine and gear oils;
and engines and gensets, as well as trades in oils
and lubricants, implements, trailers, tractors,
compressor accessories and spares, construction
equipment, and earth moving and material
handling equipment. Further, it is involved in the
aero business.
Technical Outlook:
On the daily chart, the stock has made a double
bottom at 635 levels this suggests upside
momentum. Further, RSI reading has crossed 50
levels which suggests upside momentum.
Hence we recommend buying in stock at Rs 680
or on a decline up to Rs 667 with a stop loss of
Rs 650 for a target of Rs 710-730 levels.