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We recommend a buy in Areva T&D India from a short-term trading perspective. It is evident from the charts of Areva T&D that it has been on an intermediate-term uptrend from its December 2008 low of Rs 130. This low is also a 52-week low for the stock. Following a counter-trend decline from Rs 220 levels to Rs 166 between January and March, the stock found support and resumed its uptrend. It conclusively breached the 21- and 50-day moving averages on March 30, gaining 4 per cent.

The stock again surged 6 per cent on March 31, gaining bullish momentum. We notice that there is an increase in volume over the past two trading sessions. The relative strength index (RSI) is featuring in the bullish zone and the weekly RSI is rising in the neutral region. The moving average convergence and divergence indicator has entered the positive territory.

Our short-term forecast for the stock is bullish. We anticipate it to move up until it hits our price target of Rs 224 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 193.

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