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We recommend a buy in the stock of Arvind from a short-term perspective. It is evident from the charts of the stock that ever since its March 2009 low at around Rs 10, it has been on a long-term uptrend. In mid-August this year, the stock found support and resumed its uptrend from around Rs 62 which is key long-term support level.
Medium- and short-term trends are also up for the stock. It is trading well above its 50 and 200-day moving averages. On Monday, the stock rose four per cent with above average volumes, emphatically closing above a significant long-term resistance level at Rs 90. There is an increase in volumes over the past four trading sessions.
Both daily and weekly relative strength indices are featuring in the bullish zone. Further, its daily as well as weekly moving average convergence divergence indicator is hovering in the positive territory implying upward momentum.
We are bullish on the stock from a short-term horizon. We expect its up move to continue and reach our price target of Rs 100 or Rs 103.5 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 95.
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