We recommend a buy in the stock of Geodesic from a short-term perspective. It is seen from the charts of the stock that since its February peak of Rs 65, it has been on a medium-term downtrend. However, the stock found support at around Rs 36 in mid-May and also in June this year. Triggered by positive divergence in daily relative strength index and daily moving average convergence divergence indicator, the stock changed direction.

On Monday, Geodesic jumped seven per cent accompanied by extraordinary volumes, breaching its immediate resistance at Rs 38- and 21-day moving average. The daily RSI is on the verge of entering the bullish zone from the neutral region and weekly RSI is on the brink of entering the neutral region from the bearish zone. The daily MACD has signalled a buy and is moving higher in line with the stock price indicating upward momentum.

Daily price rate of change indicator has entered the positive zone signalling buying interest. Taking a contrarian stance on the stock, we are bullish on it from a short-term perspective. We expect its up-move to continue and reach our price target of Rs 41 or Rs 42 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 38.5.