Today's Pick - Pfizer

We recommend a buy in Pfizer from a short-term perspective. From the chart, we see that it had been on a medium-term downtrend from December 2007 high of Rs 850 to mid-February low of Rs 587. However, the stock’s medium-term downtrend got arrested at around Rs 600 more recently and the stock reversed the direction. The positive divergence in the daily momentum indicator supports the stock’s reversal trend. The daily momentum indicator has entered the neutral region from the bearish zone. We see that the current upmove has breached the medium-term down trendline. We also notice a crossover in the daily moving average convergence divergence, which indicates establishment of bullishness. Our short-term outlook for the stock is bullish. We expect the stock’s ongoing rally to continue to our target price of Rs 700 in the short-term. Investors with a short-term perspective can buy the stock while keeping the stop loss at Rs 587 levels.

Via BL

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