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We recommend a buy in Aries Agro from a short-term perspective. It is clearly evident from the charts of Aries Agro that it has been on a medium-term uptrend from its 52-week low of Rs 84, recorded in early July. The stock has been forming higher peaks and higher troughs since then. In late July, the stock penetrated its intermediate-term down trendline which was in place since January high of Rs 264. On August 29, the stock Jumped up 8 per cent, accompanied with heavy vol ume taking support from its 50 day moving average. The stock is trading well above its 21- and 50-day moving averages.

The daily relative strength index (RSI) is on the brink of entering in to the bullish zone from the neutral region and weekly RSI is likely to enter into neutral region from the bearish zone. Daily moving average convergence and divergence (MACD) is featuring in the positive territory. The medium-term up trendline is intact. We are positive on the stock from a short-term perspective. We expect the stock to move up until it hits our price target of Rs 130 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 112.

Yoganand D.

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