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We recommend a buy in Srei Infrastructure Finance at current levels. From the weekly chart of the stock, we note that it is in a long-term bull market since 2003. However, there was a sharp correction in the last quarter of 2005 and the first half of 2006 that made the stock fall from a peak of Rs 85 to Rs 30.

The stock conclusively broke out with an upside breakaway gap, accompanied with heavy volumes in early June 2007.

This long-term up trend is still in place. At present, the stock is hovering near its all-time high of Rs 154. The daily and weekly momentum indicators are featuring in the bullish region.

The nearest support for the stock is at Rs 130 and the next support is at Rs 120 levels. Short-term investors can buy the stock with stop-loss at Rs 134. Our short-term outlook for the stock is bullish. We expect the stock to rally up to Rs 165 in the short-term.

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