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We recommend a buy in Hexaware Technologies from a short-term perspective. From the charts of this stock, we note that the stock has been on a long-term down trend from its December 2006 high of Rs 204.9. However, the stock found support at around Rs 60 level more recently and bounced off. On February 20, the stock penetrated the 21-day moving average, accompanied by heavy volume. Following this, on February 21, the stock conclusively broke through the 50-day moving averag e and intermediate-term down trendline and surged up 10 per cent, accompanied with good volume. The daily momentum indicator has entered the bullish zone and the weekly momentum indicator is recovering from the oversold region. We also notice a crossover in the daily moving average convergence divergence and it is steadily rising towards the positive territory. Our short-term forecast for the stock is bullish. We expect the stock’s ongoing rally to continue further to our target price of Rs 92 in the short-term. Investors with a short-term perspective can buy the stock while keeping the stop-loss at Rs 71.

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