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We recommend a buy in the stock of Jyothy Laboratories from a short-term horizon. It is seen from the charts of the stock that it has been on a long-term uptrend ever since bottoming out in late 2011 low at Rs 62. Medium-term trend has been up for the stock from its February 2013 low of Rs 140. The short-term trend is also up for the stock. On Thursday, the stock emphatically broke out of its key resistance at Rs 192 by surging 6 per cent with good volume. Moreover, we notice that there in an increase in volume over the past six trading sessions.
The daily moving average convergence divergence indicator has signalled a buy and is moving higher in line with the stock price. The daily as well as weekly price rate of change indicators are hovering in the positive territory implying buying interest. Our short-term forecast on the stock is bullish. We expect its up move to continue and reach our price target of Rs 205 or Rs 209.5 in the ensuing trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 193.5 level.
( Note : The recommendations are based on technical analysis. There is a risk of loss in trading.)
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