We recommend a buy on the stock of Jain Irrigation Systems from a short-term perspective. It is apparent from the charts of the stock that after marking a 52-week low at Rs 55.5 on April 9, the stock changed trend. This reversal was triggered by positive divergence in the daily relative strength and moving average convergence divergence indicator. Since then, the stock has been on a short-term uptrend. While trending upwards, the stock decisively broke through its immediate resistance at Rs 60 by gaining 5 per cent on April 29. Further, on Friday the stock advanced 3 per cent with good volume, strengthening its uptrend. The stock is hovering well above its 21- and 50-day moving averages. The daily RSI has entered the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region. Both the daily and weekly price rate of change indicator are featuring in the positive terrain implying buying interest. The daily MACD is trending higher in line with the stock price and is on the brink of entering the positive territory. We are bullish on the stock from a short-term perspective. We expect its rally to continue and reach our price target of Rs 69 or Rs 70.5 in the forthcoming trading session. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 64.5 level.

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

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