We recommend a buy in the stock of Welspun Corp from a short-term horizon. It is evident from the chart of the stock that after encountering resistance at Rs 216 in April, it resumed its long-term downtrend. Since then, it has been on an intermediate-term downtrend as well. However, the stock's long-term support band between Rs 65 and Rs 70, began to provide cushion last week.

Triggered by positive divergence in the daily relative strength index and price rate of change indicator, the stock changed its direction. On December 13, the stock jumped almost 13 per cent with extraordinary volume, penetrating its 21-day moving average and its immediate resistance at Rs 74. The stock's bullish momentum prolonged and it advanced almost five per cent on Thursday. We notice that there is an increase in volume over past three trading sessions.

The daily RSI is rising in the neutral region towards the bullish zone while the weekly RSI has recovered from the oversold territory. The daily moving average convergence divergence indicator has signalled a buy and is moving higher in line with the stock price. The daily price rate of change indicator has entered in the positive terrain implying buying interest.

We are optimistic on the stock from a short-term perspective. We anticipate its up move to continue until it hits our price target of Rs 87 or Rs 89 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 82.

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