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We recommend a buy in the stock of Geometric from a short-term perspective. It is apparent from the charts of the stock that following an intermediate-term downtrend, the stock found support at Rs 90 in late April this year. The stock subsequently, bounded up strongly breaking through key resistance at Rs 100. In mid-May, the stock conclusively breached its moving average compression (21-, 50- and 200-day moving averages). After testing its key resistance at Rs 110 for more than a week, the stock emphatically broke out of it by gaining 5 per cent with good volume on Wednesday.
The daily moving average convergence divergence indicator is climbing higher in the positive area indicating upward momentum. We are bullish on the stock from a short-term perspective. We anticipate its rally to continue and reach our price target of Rs 120 or Rs 122.5 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 112.7 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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