SREI Infrastructure Finance

Investors with a short-term trading perspective can buy the stock of SREI Infrastructure Finance. The stock is moving in a sideways channel with an upward bias since last June. Within this channel, the stock is in a medium term uptrend since February 2010.



The sharp rally witnessed in this stock over the past week has helped it close above the upper boundary of its intermediate term trading range at Rs 96. Moreover, the stock also closed above the psychological resistance of Rs 100 on Monday.

14-day relative strength index has moved in to the overbought region and is positioned at 73. But it continues to rise higher.

The 10-day rate of change oscillator is poised above the zero line. These oscillators imply that the short-term trend continues to be up. The stock is currently positioned well above its 21 and 50 day moving averages.

The stock can move higher to Rs 105 or Rs 108 in the days ahead. Investors can buy the stock with the stop at Rs 99.

via BL