Glaxo Pharma

We recommend a buy in GlaxoSmithKline Pharmaceuticals. It is clearly evident from the weekly chart of GlaxoSmithKline Pharmaceuticals that it had been on an intermediate-term downtrend from June high of Rs 1,340 to November low of Rs 935. However, the stock found support at historically significant support level of Rs 950 in early December. From this support level, the stock began to move up. We note that the stock has recently penetrated the intermediate-term down trendli ne and the 50-day moving average line (which was constantly providing resistance in the past). The weekly momentum indicator has recovered from the oversold region and the daily momentum indicator is likely to enter the bullish zone. The immediate-support for the stock is at Rs 1,010 and the next support is at Rs 950. Our short-term forecast for the stock is bullish and we expect it to move up to Rs 1,188. Short-term investors can buy the stock with a stop-loss at Rs 1,000.

Via Businessline