We recommend a buy in the stock of Nava Bharat Ventures from a short-term perspective. It is evident from the charts of the stock that since reversing down from the key resistance level at around Rs 445 in July 2010, the stock has been a long-term downtrend. However, its long-term support band between Rs 160 and Rs 170 halted the stock's decline during late August and early September this year.

This support band has been consistently cushioning the stock since then. Weekly moving average convergence divergence indicator is displaying a prolonged positive divergence implying a potential trend reversal in the near future.

Both daily as well as weekly price rate of change indicators are also showing positive divergence. On Monday, the stock advanced 3 per cent accompanied by above average volume, breaching its 21- and 50-day moving averages.

Daily relative strength index is inching higher in the neutral region to wards the bullish zone and weekly RSI is hovering in the neutral region. Daily price rate of change indicator has entered into positive territory signalling buying interest. Taking a contrarian stance on the stock we are bullish on it from a short-term perceptive. We expect the stock to rally and reach our price target of Rs 189.5 or Rs 195.5 in upcoming trading sessions. Short-term traders can buy the stock with stop-loss at Rs 178.5.