We recommend a buy in the stock of Greaves Cotton from a short-term perspective. It is seen from the charts of the stock that it has been in an intermediate-term uptrend from its July 2012 low of Rs 60. After taking support at its long-term base zone between Rs 74 and Rs 77, the stock continued to move higher.

Strengthening the uptrend, it jumped 4 per cent accompanied by extraordinary volume on Thursday. In this up move the stock has breached its 50- and 21-day moving averages. Both daily and weekly relative strength indices are moving higher in the neutral region towards the bullish zone. The daily as well as weekly moving average convergence divergence indicators are hovering in the positive territory implying upward momentum.

The stock's intermediate-term uptrend-line is still in place. Our short-term forecast on the stock is bullish. We expect its up move to prolong and reach our price target of Rs 85.5 or Rs 87.5 in the sessions ahead. Traders with short-term horizon can consider buying the stock with stop-loss at Rs 80.5 levels.

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