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We recommend a buy in Sesa Goa from a short-term trading perspective. It is apparent from the charts of Sesa Goa that it has been trending up since its 52-week low of Rs 60, recorded in late November 2008. The stock recently found support around Rs 68 and bounced up. On January 28, the stock jumped by 10 per cent, accompanied with heavy volume. This steep gain has reinforced the bullish momentum. Furthermore, on January 30, the stock breached its 21- and 50-day moving averages by gaining 4 per cent, with above-average volume. The daily relative strength index is rising in the neutral region towards the bullish zone and the weekly RSI has just entered the neutral region. The daily moving average convergence and divergence is signalling a buy. The price rate of change indicator has entered the positive territory. We are bullish on the stock from a short-term horizon. We expect the stock to move up until it hits our price target of Rs 94. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 80.

Yoganand D

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