Wockhardt

We recommend a buy in the stock of Wockhardt from a short-term horizon. It is seen from the charts of the stock that it found support at Rs 115 in late May 2010, which is a significant long-term support and bounced upward. Since then, the stock has been on a short-term uptrend. On Tuesday, the stock jumped 7 per cent accompanied with heavy volume, breaking through its near-term resistance level of Rs 145. Further, the stock's bullish momentum accelerated and it penetrated 200-day moving average as well as key resistance at Rs 160 by surging 7 per cent on August 5. We notice that there has been an increase in volume over the past four trading sessions. The daily relative strength index is featuring in the bullish zone and weekly RSI has entered in to this zone from the neutral region. The weekly moving average convergence divergence indicator is on the brink of entering in to the positive territory. We are bullish on the stock from a short-term perspective. We anticipate the stock to rally further until it hits our price target of Rs 169 or Rs 172 in the forthcoming trading sessions. Short-term traders can buy the stock while maintaining stop-loss at Rs 157.

via BL