Geodesic

We recommend a buy in Geodesic from a short-term trading perspective. Despite Sensex closing 114 points down on Monday, market breadth was positive and select stocks witnessed buying interest. Such stocks can continue to move higher despite weakness in broader market. Geodesic has been inching higher since the trough of Rs 116.5 formed on February 8. This appears to be the resumption of the uptrend from the lows recorded in March last year. The intermediate-term trend line and the 200-day moving average present at Rs 115 will provide support to the stock in serious declines and the medium-term view on this stock will remain positive as long as this level holds. The 10-day rate of change oscillator has moved above the zero line on Monday signalling that the uptrend can continue. The relative strength index in daily chart is also attempting to rally in to the bullish zone. Short-term targets for the stock are Rs 136 and Rs 141. Short term investors can buy this stock with the stop at Rs 123.

via BL