Geometric Software

We recommend a buy in Geometric. It is evident from the weekly chart of Geometric that it had been on a long-term downtrend from June high of Rs 131 to November low of Rs 70. The stock found support at Rs 70 and began moving higher. During this up move, the stock penetrated the medium-term down trendline as well as 50-day moving average line on December 7. Following a minor correction, the stock is facing resistance at Rs 90 level. The daily momentum indicator is on the ve rge of entering the bullish region and the weekly momentum indicator has recovered from the oversold region, which indicates bullishness. The daily moving average convergence divergence is featuring in the positive territory.

Immediate support for the stock is pegged at Rs 79 and the next is at Rs 70. Short-term investors can buy the stock with stop-loss at Rs 78. We expect the stock to break through the immediate resistance and move up to the next resistance level of Rs 100 in the short-term.

Via Businessline