AIA Engineering

Recommend a buy in AIA Engineering from a short-term perspective. It is evident from the charts that the stock has been on an intermediate-term uptrend from its March low of Rs 102. Since then, the stock has been shaping higher peaks and troughs. Conclusive break-out of the stock's significant long-term resistance level at Rs 350 by jumping 7 per cent on November 30 signals bullishness. This upmove was accompanied with high volume. The stock also is on a short-term uptrend from early November and is hovering well above its 21- and 50-day moving averages. Both daily and weekly relative strength indices are featuring in the bullish zone. Moreover, the daily as well as weekly moving average convergence and divergence indicators are attributing optimism. Considering that the stock's intermediate-term uptrend-line is in tact, we are bullish from a short-term perspective. We expect it to continue its rally until it hits our price target of Rs 417. Trader with a short-term horizon can buy the stock while maintaining a stop-loss at Rs 360.

via BL