We recommend a buy in the stock of Castrol India from a short-term perspective. It is apparent from the charts of the stock that since taking support at around Rs 195 in December 2011, the stock resumed its primary uptrend. Since then, it has been in an intermediate-term uptrend, forming higher peaks and troughs. Following a short-term corrective downtrend, the stock took support in the range between Rs 285 and Rs 295 in December 2012 and again in late January 2013 and started moving higher. The stock's intermediate-term up trend-line also provided cushion for the stock at around Rs 295. In the last two trading sessions, the stock has surged more than 4 per cent breaching its 50 and 21-day moving averages. We notice that there is an increase in volume in the past two trading sessions. The daily relative strength index is on the brink of entering the bullish zone from the neutral region and weekly RSI is climbing higher towards the bullish zone. Both daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest. Considering that the stock's up trend-line is intact and the stock is reversing higher from key support we are bullish from short-term perspective. We expect its rally to continue and reach our price target of Rs 319 or Rs 324 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 304.5 levels.

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