Gitanjali Gems

We recommend a ‘buy' in Gitanjali Gems from a short-term trading perspective. The stock gained 3.4 per cent in the last trading session accompanied by above-average volumes. It has gained 10 per cent in the last three trading sessions. The stock has been in a sideways movement between Rs 90 and Rs 150 since last June. Within this sideways move, a short-term uptrend is in motion in the stock since the May low of Rs 92.5. Third leg of this uptrend is currently in motion that can take the stock higher towards its June 2009 peak once more.



Momentum indicators in the daily chart are positioned in the bullish zone. Both the 10-day rate of change oscillator as well as the moving average convergence divergence oscillator is rising from the zero line implying that the up-move can extend a little further. We expect the stock to move higher to Rs 133 or Rs 138 in the ensuing sessions. Traders can buy the stock with the stop at Rs 125.

via BL