We recommend a buy in the stock of Venus Remedies from a short-term perspective. It is apparent from the charts of the stock that since July 2011 peak of Rs 275, it has been on an intermediate-term downtrend. However, the stock took support from its long-term base between Rs 150 and Rs 160 in December 2011 and March 2012 and bounced upwards. Since this March, the stock has been on a sideways consolidation phase in a narrow range between Rs 160 and Rs 170.

On Tuesday, the stock zoomed 4.7 per cent with above average volumes, breaking out of its upper boundary and key resistance level at Rs 170. Moreover, the stock has also emphatically breached its 21- and 50-day moving averages and is currently hovering well above them. The daily relative strength index has entered the bullish zone and weekly RSI is moving higher in the neutral region. The stock's moving average convergence divergence indicator has signalled a buy and is featuring in the positive territory implying upward momentum. Both daily and weekly price rate of change indicators are hovering in the positive terrain indicating buying interest. Our short-term outlook on the stock is bullish. We expect its up move to continue and touch our price target of Rs 181 or Rs 187 in the ensuing trading sessions. Traders with short-term horizon can consider buying the stock with stop-loss at Rs 171.

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