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We recommend a buy in Asian Paints at current levels. Asian Paints has been on a long-term up trend since 2003. A medium term up-trend is in place in the stock since the March low of Rs 650. However, the stock met with a resistance around Rs 1,000 in early August and it has been consolidating sideways between Rs 900 and Rs 1,000 since than. Currently, the stock is trading near the upper level of this sideways consolidation. The immediate resistance for the stock is at Rs 1 ,000 and the nearest support for the stock is at Rs 930 levels. We note that the weekly RSI (Relative Strength Index is a technical momentum indicator which ranges from 0 to 100) is featuring in the bullish zone, above 60 levels. Given that the medium term up trend is intact, we expect the stock to make an upward break through and reach Rs 1,100 in the short term. Short term investors can enter the stock with stop loss at Rs 930.

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