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We recommend a buy in ACC from a short-term perspective. We note that the stock has been on a long-term downtrend from its all-time high of Rs 1,314 recorded in October 2007. However, in January 2008, the stock found support at Rs 615 and made a corrective medium-term up move to Rs 850. Subsequently, the stock resumed the long-term downtrend and began to decline. Nevertheless on June 3, the stock found support at Rs 615 (a significant long-term support level) and bounced up, accompanied with above average volume. This up move has been supported by the positive divergence in the daily momentum indicator. The moving average convergence and divergence oscillator is also displaying positive divergence. We are bullish on the stock in the short-term. We expect the stock to rally until it hits our price target of Rs 715 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while keeping the stop-loss at Rs 617 level.

BL Research Bureau

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