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Tuesday, June 22, 1999

Digital Equipment a good buy 

K Seshadri  
Digital Equipment is a good choice for traders right now. The scrip is a market favourite to start with. Secondly, all the technical indicators too have signalled buy. From Rs.519 on May 26, the scrip has declined but has definitely defined its bottom.

Though there has been inter-day volatility, overall the pattern is reliable and is supportive of a rise. The daily stochastic indicator has signalled a green. But even the RSI indicator, which is necessary for the long term investor is on. The previous high for the scrip has been Rs.525.

Recommendation is buy for both the short and long term. The market might see some reactions on Tuesday due to profit booking on counters like Infosys, Reliance. But you can use this opportunity to get into Digital, which has the potential to carry on with its upward march later.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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