Today's Pick - SKF India

We recommend a buy in SKF India from a short-term perspective. It is evident from the charts that the stock was on a medium-term downtrend from its late December 2007 peak of Rs 488 till its February 2008 trough of Rs 320. However, it found support from the long-term support level of Rs 320 and reversed from there in mid February penetrating the medium-term down trend-line in the process. The long-term up trend-line too is not penetrated yet. We see that the stock is trading well above the 21-day moving average. The daily momentum indicator is rising in neutral region towards the bullish zone. The daily moving average convergence divergence is steadily rising towards the positive territory. Our short-term outlook for the stock is bullish and we expect the stock to make a rally to our target price level of Rs 406 in the coming trading sessions. Short-term investors can buy the stock while keeping the stop loss at Rs 337.