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We recommend a buy in Jindal Stainless at current levels. The weekly chart shows that Jindal Stainless has been on a long-term uptrend since June 2006, from Rs 62-levels. The daily chart shows that the stock has been charting a medium-term upward trending channel by forming higher peaks and higher lows since April 2007 from Rs 120 levels. After spotting an all-time high of Rs 185.5 on October 16, the stock declined from the upper boundary of the upward trending channel. It found support at the lower boundary of the upward trending channel (around Rs 155) and bounced up on October 23 by gaining more than 5 per cent. We note that the stock has breached the 21-day moving average line and is currently hovering above the average line. Immediate key resistance for the stock is the upper boundary of the upward trending channel around Rs 187 level. The nearest support is at Rs 155 and next support is at Rs 140 level. With the medium-term up trendline intact, we expect the stock to rally to Rs 187 during coming weeks. Short-term investors can buy the stock with a stop loss at Rs 155.

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