We recommend a buy in the stock of Rolta India from a short-term horizon. It is apparent from the charts of the stock that after marking a 52-week low at Rs 50 in December, the stock started to move higher, triggered by prolonged positive divergence in daily moving average convergence divergence indicator. Since then the stock has been on a short-term uptrend.

While trending higher, the stock managed to breach its 21-day moving average. On Tuesday, the stock emphatically broke through its medium-term downtrend-line and a key resistance around Rs 57 by surging 5.4 per cent with good volume. The stock's current short-term uptrend too has been backed with good volume.

The daily relative strength index is inching higher in the neutral region towards the bullish zone. The weekly RSI is displaying positive divergence supporting the stock's trend reversal and is also recovering from the oversold territory. We are taking a contrarian stance on the stock, since its long- and medium-term trends are down.

We are bullish on it from a short-term horizon. We expect the stock to continue its up move and reach our price target of Rs 62.5 or Rs 64 in the approaching trading session. Short-term perspective traders can buy the stock with stop-loss at Rs 58.5.

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