Investors with a short-term horizon can buy Hitachi Home & Life Solutions (India). The stock was in a medium-term downtrend from its May high of Rs 164. This decline ended in early August as the stock reversed from the support around Rs 100. Since then, the stock has been in a short-term uptrend. This uptrend was facing a strong resistance at Rs 117. The stock broke through this hurdle on Thursday with the formation of a long bullish candle. It also gained 6 per cent in that session. This break-out has positive implications for the short-term.

There is also an increase in trading volumes in the past four sessions. The stock is currently trading well above its 21- and 50-day moving averages. Indicators in the daily chart are entering the bullish zone from the neutral region. This crossover has positive connotation. The stock can continue moving higher in the short-term to attain the price target of Rs 126 or Rs 128 in the approaching trading sessions. Buy the stock while maintaining a stop-loss at Rs 118.2.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

(This article was published on October 17, 2013)
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