Investors with a short-term perspective can buy Kesoram Industries at current levels. The stock took support around Rs 51 in August after a medium-term downtrend. Since then, the stock has been on a sideways consolidation phase in the range between Rs 51 and Rs 70. Within the range, the stock took support at Rs 57 last week and started moving higher.

On Monday, it zoomed 10 per cent accompanied by extraordinary volumes, decisively breaching both its 21- and 50-day moving averages. This rally has reinforced the bullish momentum and provides an opportunity for a short-term trade. The relative strength index in the daily chart has entered the bullish zone from the neutral region signifying upward momentum. Further, both daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest. The daily moving average convergence divergence indicator signals a buy.

The stock has the potential to trend higher and reach the upper boundary of the sideways trading range in the coming weeks. Targets are Rs 68.5 and Rs 70. Buy the stock while maintaining a stop-loss at Rs 64.2 level.

( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)