Investors with a short-term perspective can buy Geometric at current levels. In late July 2013, the stock nosedived from the peak of Rs 113 to Rs 71 in a short span of time, after its first quarter earnings were announced. Subsequently, the stock started to trend upwards and it has been on a medium-term uptrend since then. In mid-December, the stock conclusively breached its 200-day moving average and is hovering well above its 50- as well as 200-day moving averages.
Taking support at around Rs 100, the stock surged 4.8 per cent on Monday with above average volume. This current rally has reinforced the bullish momentum in both the short- and medium-term uptrend. The indicators on the daily chart have entered the bullish zone signalling strength. Indicators on the weekly chart are also backing the medium-term uptrend. Buy the stock while maintaining a stop-loss at Rs 100.5 level. The short-term targets are Rs 107.5 and Rs 110.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)