Investors with short-term perspective can consider buying the stock of IDFC. It is evident from the charts of the stock that ever since bottoming out from its January 2012 low of Rs 90, the stock has been in a long-term uptrend. It has doubled in value from that low. In September 2012, the stock decisively broke through its key long-term resistance at around Rs 150 and continued to trend upwards. Medium-term trend is also up for the stock.

After moving sideways for a month, the stock jumped 3 per cent accompanied by above average volume on Wednesday. This rally has strengthened its ongoing medium-term uptrend. The stock is trading well above its 50- and 200-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is featuring in this zone. Both daily and weekly moving average convergence divergence indicators are hovering in the positive territory indicating upward momentum. The daily as well as weekly price rate of change indicators are hovering in the positive terrain implying buying interest. The stock's medium-term uptrendline is intact.

Our short-term outlook is bullish. We expect its rally to prolong and reach our price target of Rs 184 or Rs 189 in the days ahead. Traders with short-term perspective can buy the stock with stop-loss at Rs 176.

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