Investors with short-term perspective can consider buying the stock of SRF. It is seen from the charts of the stock that it has been on a steady intermediate-term uptrend. The stock has been forming higher peaks and higher trough from its February 2009 low of Rs 62. Within this uptrend the stock was on a medium-term sideways consolidation in the range between Rs 180 and Rs 220 from last October till early May this year. Subsequently, the stock breached the key resistance level of Rs 220 and is hovering well above it. Moreover, the stock is currently positioned way above its 21- and 50-day moving averages. Reinforcing the bullish momentum, the stock climbed 3 per cent with good volume on Thursday. The daily relative strength index has entered the bullish zone while the weekly RSI is already featuring in this zone. The daily moving average convergence divergence indicator has signalled a buy and is hovering in the positive territory. We like the stock from a short-term perspective and its short-term outlook is also bullish. We anticipate the stock to rally until it hits our price targets of Rs 242 or Rs 250 in the approaching sessions. Short-term traders can buy the stock with stop-loss at Rs 226.
Yoganand D.
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