SREI Infrastructure Finance

Investors with a short term perspective can buy SREI Infrastructure Finance. This stock has been witnessing brisk action over the last three trading sessions. The 7 per cent gain recorded on Wednesday has helped the stock close above both its 50- and 200-day moving averages. The sideways correction recorded by this stock since June has taken the form of an ascending triangle with the upper boundary at Rs 88 and rising troughs formed in July 2009 and February 2010. The stock has the potential to rise to Rs 125 over the medium-term and swing traders can buy with the stop at Rs 60. Oscillators in the daily chart support the continuation of the current up-move. 14-day relative strength index has moved in to the bullish zone and is positioned at 60 while the rate of change oscillator has move into positive territory. There could be some steam left in the short-term to take the stock higher to Rs 77 or Rs 81 in the sessions ahead. Short-term investors can therefore buy the stock with stop at Rs 71.

via BL