BUY BERGER PAINTS @ RS.96 - SHORT-TERM TRADING TIPS

Investors with short-term perspective can consider buying the stock of Berger Paints India. It is seen from the charts of the stock that since October 2008 low of Rs 25, the stock has been on a steady long-term uptrend forming higher peaks and higher troughs. However, after recording lifetime high of Rs 123 in September 2010, the stock was on a medium-term corrective downtrend until it found support at Rs 80 in late November. Subsequently, the stock took support and resumed its uptrend triggered with the positive divergence displayed in the daily relative strength index. The stock's 200-day moving average poised around Rs 80 also supported this reversal. Reinforcing the bullish momentum, the stock jumped 11 per cent with good volume on November 30. This up move has helped the stock breach its downtrend-line as well as 21-day moving average. Daily and weekly RSI are rising in the neutral region towards the bullish zone. Moreover, the daily moving average convergence divergence oscillator has signalled a buy. We are bullish on the stock from a short-term perspective. We anticipate the stock to move up until it hits our price target of Rs 99 or Rs 102. Traders can buy the stock with stop-loss at Rs 93.



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