SHORT TERM TRADING TIPS - Jagran Prakashan (Rs 137.7): Buy

We recommend a buy in the stock of Jagran Prakashan from a short-term perspective. It is evident from the charts of the stock that it has been on a long-term uptrend, forming higher peaks and troughs from its November 2008 low of Rs 40.5. After taking support at Rs 105 in May 2010, the stock has been on a medium-term up trend as well. Reinforcing the medium-term uptrend, the stock gained 6.5 per cent with above-average volumes on November 9. This up-move has breached its 21 and 50-day moving averages.

The daily relative strength index (RSI) has entered into the bullish zone and weekly RSI is on the brink of entering this zone from the neutral region. Daily price rate of change indicator has entered in the positive territory and weekly indicator is already featuring in positive territory implying buying interest. Our short-term forecast on the stock is bullish.

We anticipate the stock's rally to prolong until it hits our price target of Rs 142 or Rs 146 in the upcoming trading sessions. Traders with a short-term perspective can consider buying the stock with stop-loss at Rs 133.5.

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