We recommend a buy in the stock of Dabur India from a short-term perspective. It is apparent from the charts of the stock that following a medium-term downtrend from its life-time high of Rs 122, touched in June, it found base at its key long-term support level around Rs 94 in mid-November this year.

Forming a strong base around the aforementioned support level, the stock changed its direction triggered by positive divergence in the daily moving average convergence divergence indicator. The stock has been on a short-term uptrend since then. It is currently hovering well above its 21- and 50-day moving averages.

On Wednesday, the stock rose almost two per cent accompanied by above average volume, breaching its medium-term downtrendline. The daily RSI is featuring in the bullish zone and weekly RSI is inching higher in the neutral region towards to the bullish zone. The daily MACD is moving higher in the positive area, in line with the stock price indicating upward momentum.

Our short-term outlook on the stock is bullish. We expect the stocks up move to continue and reach our price target of Rs 106 or Rs 110 in the upcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 101.5.

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