We recommend a buy in the stock of Tube Investments of India from a short-term perspective. It is seen from the charts of the stock that after marking a 52-week low at Rs 96 on December 20, it did a volte-face. Since then, the stock has been on an intermediate-term uptrend. However, encountering resistance at Rs 154 in mid-March this year, the stock witnessed a short-term corrective decline. Retracing 38.2 per cent Fibonacci retracement level of the stock's prior up leg, it found support around Rs 130 in mid-May.

This level is also a crucial support level. Further, the stock's 200-day moving average also provided cushion around Rs 130. In the past two trading sessions, the stock has gained 5.6 per cent reinforcing the bullish momentum. There is an increase in volumes over past two sessions. This up move has breached its 21- and 50-day moving averages. Both the daily as well as weekly relative strength indexes are on the brink of entering the bullish zone from the neutral region. We are bullish on the stock from a short-term perspective. We expect it's up move to continue and reach our price target of Rs 145 or Rs 149 in the forthcoming trading sessions. Traders with short-term horizon can consider buying the stock with stop-loss at Rs 136.

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