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We recommend a buy in the stock of Jain Irrigation Systems from a short-term perspective. It is seen from the charts that following a medium-term downtrend from its January 2013 peak of Rs 86, the stock got halted at its significant long-term support at Rs 60 in late February. Subsequently, the stock started trending upwards triggered by positive divergence in daily relative strength index and price rate of change indicator. The daily moving average convergence divergence indicator is also displaying positive divergence backing the stock's trend reversal. On Monday, it gained 4 per cent accompanied by above average volume breaching its immediate resistance at around Rs 66. The daily RSI is on the brink of entering the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region. The daily MACD has signalled buy and is moving higher in line with the stock price. Moreover, daily price rate of change indicator is hovering in the positive territory implying buying interest. We are bullish on the stock from a short-term perspective. We expect its short-term uptrend to continue and reach our price target of Rs 73.5 or Rs 75 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 69 level.
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