We recommend a buy in the stock of J.B. Chemicals & Pharmaceuticals from a short-term perspective. It is seen from the charts of the stock that since early 2009 low at around Rs 30, it has been on a long-term uptrend. However, after registering an all-time high of Rs 185 on April 21, the stock began witnessing selling pressure and nose dived in late May.

It found support at around Rs 120 and changed its direction in early June triggered by positive divergence in daily relative strength index. Since then, the stock has been on short-term uptrend, backed with good volumes during positive-close days. On July 11, the stock jumped five per cent with above average volumes taking support from its 200-day moving average. The daily RSI has entered into the bullish zone and weekly RSI is inching higher in the neutral region towards the bullish zone. Daily moving average convergence divergence is moving higher in line with the stock price and is on the brink of entering into the positive territory.

We are bullish on the stock from a short-term perspective. We anticipate it to move higher and reach our price target of Rs 144 or Rs 148 in the upcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 135 levels.

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