Today's Pick - Himatsingka Seide

We recommend a buy in Himatsingka Seide from a short-term perspective. From the charts of the stock we note that it has been on an intermediate-term down trend from its January 2008 high at Rs 135. The stock has moved lower from this peak in a series of lower peaks and troughs. This down trend found support at Rs 45 recently, which is also the52-week low. Triggered by the prolonged positive divergence in the daily moving average convergence and divergence, the stock began to move up. On June 12, the stock gained momentum and surged 9 per cent penetrating the 21-day moving average. This up move was accompanied by good volume. We believe that the stock will continue to move higher in the short-term. The daily relative strength index, which was in the bearish zone in the recent times, has entered the neutral region. We are bullish on the stock in the short-term. We expect the stock to move upwards until it hits our price target of Rs 60 in the coming trading sessions. Traders with short-term perspective can buy the stock, while maintaining the stop-loss at Rs 48.

via BL