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We recommend a buy in Novartis India at current price levels. The stock had been on a long-term downtrend from December 2004 high of Rs 700 levels to August 2007 low of Rs 270. We note that the long-term downtrend got arrested at a significant support level of Rs 280 and the price action from July appears to be a double bottom pattern with baseline at Rs 340 (a bottom reversal pattern). On November 20, the stock penetrated the baseline by gaining more than 3 per cent, acco mpanied with good volumes. With this gain, the stock has conclusively moved above the 200-day moving average line. The daily momentum indicator has entered the bullish region. The immediate support for the stock is at Rs 310 and the subsequent support is at Rs 280 level. Short-term investors can buy the stock with stop-loss at Rs 320. We expect the stock to reach our double bottom price target of Rs 400 (ceiling of June gap) in the short-term.

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