Buy Opto Circuits India; target of Rs. 260: IIFL

Bangalore: IIFL is bullish on Opto Circuits India and has recommended buy rating on the stock with a target of Rs. 260. According to IIFL, from February 2010 till date, the price behavior of Opto Circuits India has been oscillating in narrow channel having a positive slope. Prices have violated the resistance line of rising channel and have closed above Rs. 240 mark. Accompanied by bullish belt hold pattern on daily candlestick chart, this breakout can be a positive move.

Opto Circuits India is engaged in the development, manufacture, distribution and marketing of medical equipment and devices. The Company also provides ancillary and complementary services, such as after-sales services for its patient monitoring devices. In addition, the Company provides information technology consulting, global positioning systems and electronic design automation services in India. The services offered by the Company include healthcare equipment, information technology and bankcard technology, strategic electronics and electronic design automation. In April 2010, the Company acquired N. S. Remedies.

IIFL says, prices are expected to enter into a new trading zone with earlier resistance of Rs. 238-240 acting as strong support. With the recommendation target price Rs. 260, if the stock is bought at Thursday's closing price of Rs. 241.50, the percentage of gain would be 7.11 percent.