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Investors with short-term perspective can consider buying the stock of Geometric. It is seen from the charts of the stock that after encountering resistance at Rs 125 in early October 2012, the stock started to decline. Since then, the stock has been on a medium-term downtrend. However, significant long-term support band between Rs 97 and Rs 100 arrested the stock’s decline in late December 2012 and mid-February this year.
The stock's 200-day moving average also provided base around Rs 97. Taking support from the aforementioned support zone, the stock began to move higher. This reversal is backed by positive divergence in daily moving average convergence divergence indicator. The stock jumped 7.7 per cent accompanied by above average volume breaching its 50- and 21-day moving average on Tuesday.
Moreover, the stock's long-tem uptrend that commenced in November 2011 low of Rs 36.5 is still in place. We are bullish on the stock from a short-term perspective. We expect its up move to continue and reach our price target of Rs 109.5 or Rs 111.5 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 103 levels.
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