We recommend a buy in the stock of Kalindee Rail Nirman (Engineers) from a short-term horizon. It is apparent from the charts of the stock that after finding support at its long-term base zone between Rs 85 and Rs 90 in March this year, the stock started to consolidate sideways in a broad range between Rs 85 and Rs 126.

Testing the stock's long-term support zone between Rs 85 and Rs 90 in mid-November, the stock reversed higher triggered by positive divergence in daily relative strength index. Since then, the stock has been on a short-term uptrend. On Thursday, it surged 9.7 per cent with extraordinary volume, breaking through its immediate resistance at Rs 110 conclusively. Moreover, this up move has breached its 50- and 200-day moving averages.

There is an increase in volume over the past three trading sessions. The daily RSI has entered into bullish zone from the neutral region, and weekly RSI is rising towards the bullish zone. The daily price rate of change indicator is featuring in the positive territory and weekly indicator has just entered this territory signalling buying interest.

Our short-term outlook on the stock is bullish. We expect the stock's short-term up move to prolong and touch our price target of Rs 117 or Rs 121 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 110.5.

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