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We recommend a buy in Goodyear India. From the weekly chart of Goodyear India, we note that after making an all-time high of Rs 215 (in June 2007), the stock had been on a downtrend to a low of Rs 151. The stock found support at Rs 151(which is historically long-term support level) and began to trend up. During this up move, Goodyear India crossed over average lines of all-time frames (21, 50 and 200-day moving averages).

Recently, the stock met with resistance at around Rs 190 and is currently hovering around this level. The daily momentum indicator is featuring in the bullish zone and the weekly momentum indicator is on the verge of entering this region. The daily moving average convergence divergence lines are gradually rising in the positive territory. On the downside, the immediate support for the stock is at Rs 170 and the next support is at Rs 150 levels. We expect the stock to penetrate the current resistance and rally up to Rs 215 level in the short-term. The short-term investors can buy the stock while keeping the stop-loss at Rs 170 level.

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