Vardhman Textiles

We recommend a buy in Vardhman Textiles from a short-term horizon. It is evident from the charts of the stock that it has been on an intermediate-term uptrend since March low of Rs 43. Moreover, with in this uptrend the stock was on a medium-term sideways consolidation between Rs 150 and Rs 180. The stock made an upward break through of the sideways range as well as long-term resistance at Rs 180 by jumping 9 per cent accompanied with high volume on November 25. The intermediate-term up trend got reinforced and the counter is hovering way above the 21- and 50-day moving averages. The daily relative strength index (RSI) has entered in the bullish zone and weekly RSI is featuring in this zone. We are bullish on the stock from a short-term horizon. We anticipate it to trend upward further until it knocks our price target of Rs 210. Trader with a short-term horizon can buy the stock while maintaining a stop-loss at Rs 180.

via BL