For investors with a short-term perspective, Indoco Remedies could be just what the doctor prescribed. This small-cap pharmaceutical company has been on a long-term uptrend from its March 2009 low of Rs 13. But the rally was halted in November 2010. Since then, the stock has been moving sideways between Rs 50 and Rs 70. On Tuesday, the stock broke out of the upper ceiling of this trading band, gaining 4 per cent. There has been an increase in volumes over the past six trading sessions. The stock is hovering well above its 50- and 200-day moving averages. Indicators on the daily chart are featuring in the positive territory indicating upward momentum. Similarly, indicators on the weekly chart are also hovering in the positive territory, backing the bullish momentum. With
the recent upmove, the stock appears to have resumed its long-term uptrend. It can continue trending northward and reach the price target of Rs 77.5 or Rs 79 in the ensuing trading sessions. Investors can buy the stock with a stop-loss at Rs 72.8.
BL Research Bureau
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)