We recommend a buy in the stock of IVRCL from a shortterm perspective. The stock has strong support at Rs 37 and it bounced off this level in June this year.

The stock once again took support at this level towards the end of August and after hovering here for two weeks, it reversed higher on Friday. The stock is up 15 per cent in the last two sessions signallingthe onset of a short-term uptrend.

It has moved above its 21- as well as 50-day moving averages. Momentum indicators such as daily relative strength index have moved into the bullish region implying that the up-move can continue in the shortterm.

The stock can move up to Rs 46.7 and then Rs 48.2 in the near-term. Short-term investors can buy the stock with stop at Rs 43.2.

(This article was published on September 17, 2012)
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