• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

We recommend a buy in ICSA India from a short-term trading perspective. It is evident from the chats of ICSA India that it was on an intermediate-term downtrend from August peak to late December 2008 low (from Rs 400 to Rs 127). However, the stock found support at this December low and reversed direction. This trend reversal has been backed by positive divergence displaying in the weekly relative strength index (RSI). A positive divergence is also noticed in daily moving average and convergence and divergence. On January 2, the stock penetrated its intermediate-term down trendline by jumping 6 per cent, accompanied with good volume. Subsequently, it breached 21-day moving average, reinforcing the bullishness. The daily RSI is rising in the neutral region towards the bullish zone and weekly RSI is on the brink of entering the neutral region from the bearish zone. We are bullish on the stock from a short-term perspective. We expect it to move up until it hits our price target of Rs 166. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 142.

More Stories on : Stocks | Recommendation | Software

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line