We recommend a buy in the stock of Whirlpool of India from a short-term perspective. The stock is in a medium-term uptrend since bottoming out from its 52-week low at Rs 141 registered in early January this year. On April 1, the stock emphatically broke through its key long-term resistance at Rs 200 with good volumes and later it encountered its next resistance at Rs 227. After testing this resistance over the past week, the stock decisively penetrated it by jumping 5.5 per cent on Monday.

We note that there is an increase in daily volumes over the past three trading sessions. The stock is trading well above its 50- and 200-day moving averages. Both daily and weekly relative strength index are featuring in the bullish zone implying upward momentum. Its weekly indicator is on the brink of entering the positive territory. The daily as well as weekly price rate of change indicators are hovering in the positive area indicating buying interest.

We expect its bullish momentum to prolong and touch our price target of Rs 241 or Rs 248 in the ensuing trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 227.

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