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Investors with a short-term trading perspective can buy the stock of Fedders Lloyd Corporation. The stock is moving in a very narrow band between Rs 75 and Rs 85 since March 3. Since this sideways move follows the small upward burst after the Union Budget from the trough of Rs 71, the stock can attempt to move higher in the near-term. It managed to close above the short-term resistance around Rs 80 as well as its 50-day moving average on Thursday. The 14-day relative strength index has moved to near 60, that is the bullish zone, and the 10-day rate of change oscillator is also reversing higher from the zero line implying that the near-term uptrend could sustain in the stock.

The stock is also in a strong medium-term uptrend since the March 2009 low. Though there was a pause in this uptrend since January 12, the fact that the stock retraced only 30 per cent of its prior uptrend denotes that the medium-term trend continues to be up. The stock can be bought with for the short-term with the target of Rs 85 and Rs 90 with the stop at Rs 76.5.

Lokeshwarri S K

BL Research Bureau

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