We recommend a buy in the stock of Man Infraconstruction as its bullish momentum can prolong. It is apparent from the charts of the stock that after peaking out in April, the stock was on an intermediate-term downtrend until it found base at its significant support zone between Rs 150 and Rs 160 recently. This support zone coincides with 50 per cent Fibonacci retracement level of the stock's prior up move.

The stock changed its trend triggered by positive divergence in daily price rate of change indicator and is in a near-term up move backed by good volumes. On Thursday, the stock decisively breached its key immediate resistance and 50-day moving average at Rs 175 by gaining 4.5 per cent with above-average volumes. It is hovering well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region towards the bullish zone.

The daily moving average convergence divergence indicator has signalled a buy. We are bullish on the stock from a short-term perspective. We anticipate its up move to continue and reach our price target of Rs 189 or Rs 192.5 in the upcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 178 levels.

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