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We recommend a buy in Wockhardt from a short-term horizon. It is evident from the charts of Wockhardt that the medium-term downtrend which commenced to decline from the resistance level at Rs 210, halted at Rs 88.8 in early December, which is also a 52-week low. After finding support at this low, the stock reversed its trend upwards and the daily and weekly relative strength index that were hovering in oversold region also began moving higher. At present the stock has been on a medium-term uptrend since early December. During its up move, the stock crossed the hurdles such as down trend line and 21-day moving average. On December 22, the stock surged 4 per cent. We note that there is an increase in volume over the past six trading sessions. We are bullish on the stock from a short-term horizon. We anticipate the current up move to prolong until it hits our price target of Rs 124 in the upcoming trading days. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 106.

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