We recommend a buy on the stock of Exide Industries from a short-term perspective. It is evident from the charts of the stock that after taking long-term support at around Rs 120 in April this year, it started to move sideways. Since then, the stock has been in a medium-term sideways consolidation phase, trading between Rs 120 and Rs 142 levels. In late August, the stock took support at the lower boundary and began to trend upwards.

On Wednesday, the stock jumped 3.7 per cent accompanied by above average volume, breaching its 21- and 50-day moving averages decisively. This rally has reinforced short-term bullish momentum on the stock. The daily moving average convergence divergence indicator has signalled a buy and is about to enter the positive territory from the negative territory. Both daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest.

We are bullish on the stock from a short-term perspective. We expect its rally to extend and reach our price target of Rs 136.5 or Rs 139.5 in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock with stop-loss at Rs 128.5 levels.

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

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