We recommend a buy in Geometric’s stock from a short-term perspective. The stock is in an uptrend since the November low of Rs 36.5. It took support from the medium-term uptrend line on May 2011 and is moving higher once again.

This also occurs close to 50 per cent retracement of the up-move from the 2011 low. Oscillators in the daily chart have given a buy signal though some of the faster oscillators are indicating that the stock is overbought.

The stock spiked sharply higher on Monday, gaining Rs 7 or 10 per cent. What is more interesting is that the stock has managed the highest close since January 2011. Short-term investors can buy the stock with stop at Rs 77. The stock can move higher to Rs 82 or Rs 86 in the coming trading sessions.

(This article was published on July 23, 2012)
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