SHORT-TERM TRADING TIPS - IVRCL Infrastructures (Rs 133.8): Buy

We recommend buying the stock of IVRCL Infrastructures and Projects from a short-term perspective. It is evident from the charts of the stock that it has been on an intermediate-term downtrend forming lower peaks and lower troughs from its October 2009 peak of Rs 212. Since its July 2010 peak of Rs 194, the stock has been on a medium-term downtrend. In early November, the stock broke through a significant long-term support at Rs 150 and was on an accelerated short-term downtrend. However, the presence of longer-term key support at Rs 120 arrested the stock's decline recently. Moreover, positive divergence displayed in the daily relative strength index has triggered the stock to change direction. On December 1, the stock surged 9 per cent accompanied with good volume. This upmove prolonged on Thursday with gains of 2.4 per cent. The daily RSI has entered in to the neutral region from the bearish zone and weekly RSI is on the verge of entering into neutral region from the bearish zone. We notice formation of a bullish engulfing candlestick pattern in weekly chart, which is a reversal pattern. Daily moving average convergence divergence oscillator has signalled a buy. From a short-term perspective, we are bullish on the stock. We expect the stock's upmove to continue until it hits our price target of Rs 138 or Rs 142 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 129.5.