Thermax

We recommend a buy on Thermax stock from a short-term trading perspective. We observe from the charts of Thermax that from December 2008 high of Rs 222, the stock was on a medium-term downtrend till it found support at around Rs 150 in early March 2009. The stock has significant medium-term support level at Rs 150.The stock changed its trend after taking support recently. On March 17, the stock jumped up by 6 per cent breaking through its medium-tern down trendline as well as 21-day moving average. On March 18, the stock gained 6 per cent penetrating the 50-day moving average on March 18. We notice good volume traded over the past two sessions. The daily relative strength index is featuring in the bullish zone. The daily moving average convergence and divergence is on the brink of entering into positive territory. We are bullish on the stock from a short-term horizon. We look forward to the stock rallying further until it hits our price target of Rs 195 in the upcoming sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 165.