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We recommend a buy in Gitanjali Gems from a short-term perspective. From the charts of Gitanjali Gems, we see that the stock was on a medium-term downtrend from the resistance level at around Rs 475 till it found support at around Rs 210 in early April 2008. However, after finding support at Rs 210, the stock reversed the direction and commenced its up move. Subsequently, the stock breached the medium-term down trendline and penetrated the 21-day moving average in mid Apr il. In the recent time, the stock penetrated 50-day moving average, pointing further bullishness. The daily relative strength index is featuring in the bullish region and the weekly RSI is steadily rising in the neutral region. Moreover, the daily moving average convergence and divergence has entered the positive territory. Our short-term outlook for the stock is bullish. We expect the stock’s current up move to continue to our price target of Rs 328Investor with short-term perspective can buy the stock while keeping the stop-loss at Rs 273 level.

Yoganand D.

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