Today's Pick - ACC

We recommend a buy in ACC from a short-term perspective. It is clearly evident from the charts of ACC that the stock has been on a downtrend from its life-high of Rs 1,315 touched in mid October 2007. The stock found support at the key long-term support of Rs 700 in mid January and has been moving sideways since then. More recently, the stock breached the 21-day moving average and then began to move up. This up move was backed by positive divergence of the daily momentum i ndicator. This indicator has entered the neutral region from the bearish territory. We also see that there is an increase in volume in the last trading session. We notice a crossover in the daily moving average convergence divergence and it is steadily rising towards the positive levels. Our short-term outlook for the stock is bullish. We expect the stock’s current up move to prolong further to our target price of Rs 900 in the short-term. Investors with a short-term perspective can buy the stock while keeping the stop loss at Rs 725.