We recommend a buy in the stock of Madras Cements from a short-term perspective. It is seen from the charts of the stock that since bottoming around Rs 80 in August 2011, the stock has been on an intermediate-term uptrend. The stock rallied strongly in early February, breaking through a significant long-term resistance at Rs 130. Since then the stock has managed to trade above the aforementioned level which is now a key long-term support level.

The stock has been on a sideways consolidation from mid-February this year, broadly between Rs 137 and Rs 158. After taking support from the lower boundary at Rs 137, the stock bounced up 4.4 per cent on Monday. We see that there is an increase in volumes over the past two trading sessions. The stock's up move has breached its 21-day moving average and it appears to have resumed the intermediate-term uptrend. We are bullish on the stock from a short-term perspective. We expect the stock to rally towards upper boundary and reach our price target of Rs 151.5 or Rs 156 in the forthcoming sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 142.5.