We recommend a buy in the stock of Asahi India Glass from a short-term perspective. It is seen from the charts of the stock that it has been on a long-term downtrend ever since peaking out at Rs 123 in November 2010. However, the stock found support around Rs 50 in December 2011, and changed its direction triggered by positive divergence in daily moving average convergence divergence as well as weekly relative strength index.

Since the December trough, the stock has been on a short-term uptrend. While trending up, the stock breached its 21- and 50-day moving averages conclusively and is hovering well above them. Moreover, the stock has breached its medium-term down trendline recently.

On Tuesday, it climbed more than seven per cent accompanied by above average volume, reinforcing its short-term up move. The daily RSI has entered the bullish zone from the neutral region and weekly RSI has entered the neutral region from the bearish zone.

The daily MACD is inching higher in line with the stock price and is on the brink of entering the positive territory. We are bullish on the stock from a short-term perspective. We expect its move to continue and reach our price target of Rs 64 or Rs 66 in the upcoming sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 60.

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