We recommend a buy in the stock of Aban Offshore from a short-term perspective. It is seen from the charts of the stock that its significant base band between Rs 320 and Rs 330 has been consistently providing support since August 2011. In early June this year, the stock took support from the base zone and reversed higher. Since then, the stock has been on a nascent medium-term uptrend. Near-term trend is also up.

Last Friday, the stock jumped 4 per cent with good volumes, emphatically breaching its 200-day moving average at around Rs 406. The stock is presently hovering well above its 50 and 200-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is inching higher in the neutral region.

The daily moving average convergence divergence indicator has signalled a buy and is featuring in the positive terrain implying upward momentum. Both daily and weekly price rate of change indicators are hovering in the positive area indicating buying interest. We are bullish on the stock from a short-term perspective.

We anticipate the stock's up move to continue and reach our price target of Rs 435 or Rs 448 in the forthcoming sessions. Traders with a short-term perspective can consider buying the stock while maintaining stop-loss at Rs 409.

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