HCL Infosystems

We recommend a buy in HCL Infosystems from a short-term perspective. It is evident from the charts of HCL Infosystems that after forming a bottom reversal pattern (double bottom) between November 2008 and April 2009, it began to move northward. However, within this uptrend, the stock was on a medium-term corrective downtrend from Rs 132 to Rs 98. Taking support around Rs 100, the stock resumed its uptrend in middle of July. Recently the stock breached its 21- and 50-day moving averages. Both daily and weekly relative strength indices (RSI) have entered the bullish zone from the neutral region. We are bullish on the stock from a short-term perspective. We expect the stock’s up move to continue until it hits our price target of Rs 130. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 112.

via BL