We recommend a buy in the stock of Geodesic from a short-term horizon. It is seen from the charts of the stock that since encountering long-term resistance at around Rs 140, the stock has been on an intermediate-term downtrend. It has been on a medium-term downtrend from its April peak of Rs 97.

The stock's downtrend accelerated last week and it hit a 52-week low of Rs 47 on August 9. Significant long-term support in the band between Rs 47 and Rs 50 appears to have provided support for the stock recently. After forming a bullish inverted hammer pattern which is a bullish reversal candlestick pattern around the support, the stock bounced upwards.

It has zoomed 10 per cent with extraordinary volumes on Thursday. Moreover, the stock touched its lower boundary of the Bollinger Band and is recovering higher. We notice that there has been an increase in volumes over the past four trading sessions. Daily relative strength index is recovering from the oversold territory and weekly RSI is featuring in the oversold area.

Taking a contrarian stance on the stock, we are bullish on the stock from a short-term perspective. We anticipate the stock's up-move to sustain further and reach our price target of Rs 55 or Rs 57 in the days ahead. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 51.5.

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