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We recommend a buy in Alstom Projects at current levels. From the charts of Alstom, we note that it has been on a stable long-term uptrend since July 2006 low. The medium-term uptrend which commenced from Rs 614 levels is intact. Moreover, the crossover of the 21-day moving average over the 50-day moving average in late September, confirms the bullish momentum in place. After encountering a resistance around Rs 1,030 in mid-October, the stock has been moving sideway in between Rs 900 and Rs 1,030.

Alstom is currently testing the upper level of the sideways movement. The daily momentum indicator has re-entered the bullish region, following a correction. Moving average convergence divergence indicator is also projecting bullishness. Immediate support of Alstom is at Rs 900 and the next support is at Rs 780 levels. Short term investors can buy the stock with stop loss at Rs 950. We expect the stock to breach the upper level of the sideways range and move up to Rs 1,165 in the short term.

Yoganand.D

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