We recommend a buy in the stock of IVRCL from a short-term perspective. It is evident from the charts of the stock that after taking support from its long-term base level at around Rs 28 in December 2011, the stock reversed direction. This reversal was triggered by strong long-term support and prolonged positive divergence in weekly relative strength index as well as moving average convergence divergence.

Since then, the stock has been on a strong medium-term uptrend. It recently took support around Rs 45 and bounced up. On Wednesday, the stock jumped 11 per cent accompanied by above average volume penetrating its 200-day moving average. This up move has reinforced the bullish momentum. Further, the stock is hovering well above its 21- and 50-day moving averages.

The daily RSI is featuring in the bullish zone and weekly RSI has entered into this zone. The daily MACD is moving higher in line with the stock price. Our short-term outlook on the stock is bullish.

We expect its bullish momentum to prolong and reach our price target of Rs 58 or Rs 59.5 in the sessions ahead. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 54.5.