We recommend a buy in the stock of Geometric from a short-term perspective. It is seen from the charts of the stock that after registering a 52-week low at Rs 34.7 on August 19, it bottomed out. Thereafter, the stock consolidated sideways in the broad range between Rs 36 and Rs 48.

We observe a double bottom formation, a bottom reversal pattern with neckline at Rs 48. On Monday, the stock skyrocketed 10.6 per cent, conclusively breaking through the neck-line as well as a key resistance at Rs 50. There is an increase in daily volumes over the past three trading sessions. The stock is trading well above its 21- and 50-day moving averages.

The 14-day relative strength index is featuring in the bullish zone and weekly RSI is on the brink of entering into the bullish zone from the neutral region. The daily moving average convergence divergence indicator has signalled a buy, and is likely to enter into the positive territory.

Both daily and weekly price rate of change indicators are hovering in the positive terrain indicating buying interest. Our short-term outlook on the stock is bullish. We expect its rally to prolong and reach our price target of Rs 55.5 or Rs 57 in the upcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 52.

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