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We recommend a buy in Polaris Software Lab from a short-term perspective. It is clearly visible from the charts that the stock has formed a significant trough at Rs 62 in January.

This trough has halted the long-term down trend that was in motion since the 2007 peak at Rs 237. The double-bottom pattern spanning almost three months between January and April this year signals a possible long-term reversal.

On April 17, the stock conclusively broke through the baseline of this double-bottom pattern, indicating bullishness.

We notice good volume support over the past four weeks. The daily momentum indicator has re-entered the bullish region. We are bullish on the stock in the short-term and expect it to move up to our target price level of Rs 124 in the forthcoming trading sessions. Investors with short-term perspective can buy the stock while keeping the stop-loss at Rs 104.

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