We recommend a buy in the stock of Raymond from a short-term perspective. It is apparent from the charts of the stock that after taking support from its key long-term base level at Rs 250 in February, the stock continued its long-term uptrend. Intermediate-term trend has been up in the stock since then.

The stock conclusively penetrated upwards from its moving average compression at around Rs 340 in October and is trading well above its 200-day moving average. On Wednesday, the stock broke-out of a pennant pattern by jumping six per cent with good volumes. Further, this up move has breached the stock's significant resistance at Rs 400. The daily relative strength index has re-entered in to the bullish zone from the neutral region and weekly RSI has entered into the bullish zone.

Both daily and weekly moving average convergence divergence indicators are hovering in the positive territory implying upward momentum. The daily as well as weekly price rate of change indicators are featuring in the positive area signalling buying interest. Considering that the stock's long-term uptrend line is intact and its recent break-out, we are bullish on the stock from a short-term perspective.

We anticipate the stock to trend northwards and touch our price target of Rs 422 or Rs 433 in the forthcoming trading session. Traders with short-term perspective can buy the stock with stop-loss at Rs 397.

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