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We recommend a buy in GMR Infrastructure from a short-term perspective. From the charts of GMR Infrastructure, we note that it was on a medium-term downtrend from its early May 2008 high of Rs 169 till it recorded a 52-week low of Rs 76 during early July.

However, the stock’s medium-term downtrend got arrested at around Rs 80 recently, a significant long-term support level. The stock has been on a short-term uptrend since early July. On July 9, the stock penetrated the medium-term down trendline by surging almost 6 per cent.

The short-term up-trend of the stock has been backed by good volume. The daily momentum indicator has recovered from the oversold territory and has entered into the neutral region. The daily moving average convergence and divergence is moving in line with the stock and is signalling a buy. We are bullish on the stock in the short-term. We anticipate the stock to rally until it hits our price target of Rs 106 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 88.

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