We recommend a buy in the stock of Bharati Shipyard (Rs 90.9) from a short-term perspective. It is seen from the charts of the stock that after bottoming out registering a 52-week low at Rs 65 on December 22, 2011, it has been on a medium-term uptrend. But, the stock witnessed a minor corrective decline from its recent peak of Rs 114. Following a 61.8 per cent fibonacci retracement of the stock's prior up move, it took support at Rs 85, which is an important long-term base in the previous week.

Cushioned by this long-term support and 50-day moving average poised at Rs 85, the stock started to move higher. On Monday, the stock jumped four per cent accompanied by above average volumes, reinforcing the medium-term uptrend. Both daily and weekly relative strength indices are inching higher in the neutral region towards the bullish zone.

The daily price rate of change indicator has entered into the positive territory and weekly indicator is featuring in this territory implying buying interest. 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 94 or Rs 96.5 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 88.

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