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We recommend a buy in Eveready Industries India at current levels. From the weekly chart of Eveready, we see that it had been on a long-term downtrend from April 2006 high of Rs 137 till October 2007. After finding support at Rs 40, the stock reversed in early November and commenced an up-move. On November 15, the stock conclusively broke through the long-term down trendline by surging 14 per cent. Again on the following trading session, the stock penetrated the 200-day mo ving average line as well as a significant resistance level at Rs 57 by gaining 12 per cent with heavy volumes. The daily momentum indicator is featuring in the bullish region. Moving average convergence divergence is also signalling short-term bullishness on the stock. Immediate support for the stock is at Rs 57 and the next significant support is at Rs 40. Short-term investors can buy the stock with stop-loss at Rs 57. We expect the stock to rally to Rs 71 in the short-term.

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