We recommend a buy in Geometric’s stock from a short-term perspective. The stock is in an uptrend since the November low of Rs 36.5. It took support from the medium-term uptrend line on May 2011 and is moving higher once again.
This also occurs close to 50 per cent retracement of the up-move from the 2011 low. Oscillators in the daily chart have given a buy signal though some of the faster oscillators are indicating that the stock is overbought.
The stock spiked sharply higher on Monday, gaining Rs 7 or 10 per cent. What is more interesting is that the stock has managed the highest close since January 2011. Short-term investors can buy the stock with stop at Rs 77. The stock can move higher to Rs 82 or Rs 86 in the coming trading sessions.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.