We recommend a buy in the stock of Brigade Enterprises from a short-term perspective. It is evident from the charts of the stock that after a medium-term downtrend, the stock found support at around Rs 55 in late March this year. Thereafter, the stock reversed trend triggered by positive divergence in daily relative strength index. Since then, the stock has been on a budding short-term uptrend.

After testing the significant long-term resistance at Rs 73 for more than two weeks, the stock emphatically broke through it by jumping 6.8 per cent on Wednesday. This up move was accompanied by an upward gap and extraordinary volume. Further we notice that there is an increase in daily volume for the past three trading sessions. Since late March, the daily moving average convergence divergence indicator has been trending higher in line with the stock price and is featuring in the positive area.

Our short-term forecast on the stock is bullish. We expect its rally to continue and reach our price target of Rs 81.5 or Rs 83 in the upcoming trading sessions. Traders with a short-term perspective can consider buying the stock with stop-loss at Rs 76.6 level.

( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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