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We recommend a buy in the stock of Binani Cements from a short-term perspective. It is evident from the charts of the stock that after testing the long-term key support band between Rs 80 and Rs 82 in November 2010, the stock bounced up resuming its long-term uptrend. Both the long and medium-term trend is up for the stock. Moreover, since November 2010 it has been on a short-term uptrend as well. The stock is trading well above its 50 and 200-day moving averages.
During the previous week, the stock inched higher with good weekly volumes and closed above its immediate key resistance level of Rs 90. The daily relative strength index is featuring in the bullish zone and the weekly RSI is on the brink of entering in to this zone. Both the daily and weekly moving average convergence divergence indicators are hovering in the positive territory indicating upward momentum. Daily price rate of change indicator is featuring in the positive territory and weekly indicator has just entered this territory which implies buying interest. We are bullish on the stock from a short-term perspective. We anticipate it to move higher until it touches our price target of Rs 94.5 or Rs 96.5 in the forthcoming trading sessions. Traders with a short-term horizon can consider buying the stock with stop-loss at Rs 90.
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