Geometric

We recommend a buy in Geometric from a short-term perspective. It is evident from the charts of the stock that after touching a multi-year low at Rs 10.5 in March 2009, the stock reversed direction. Since then the stock has been on a longer-term uptrend, forming higher peaks and higher troughs consistently. It broke through key resistances at Rs 42 and Rs 63 while trending upwards backed with good volumes. Moreover, the stock broke out of a sideway consolidation range between Rs 66 and Rs 73 by gaining 7 per cent with high volume. The daily relative strength index is hovering in the bullish zone and weekly RSI also is featuring in this zone. Both the daily and weekly moving average convergence and divergence indicators are hovering in the positive territory. Considering that the longer and medium-term uptrend lines are in tact, we are bullish on the stock from a short-term horizon. We anticipate its rally to prolong until it hits our short-term price target of Rs 84. Traders with short-term perspective can consider buying the stock while maintaining stop-loss at Rs 72.

via BL