SHORT-TERM TRADING TIPS - BUY VIDEOCON INDUSTRIES

YOGANAND OF BUSINESSLINE recommend a buy in the stock of Videocon Industries from a short-term perspective. It is evident from the charts of the stock that following an intermediate-term downtrend from its October 2010 peak, the stock found support at its March 2011 low of Rs 175. The stock reversed direction triggered by positive divergence in daily moving average convergence divergence and price rate of change indicators. It has been on a short-term uptrend since then.

On April 29, the stock jumped four per cent penetrating its 21- and 50-day moving averages, showing signs of bullishness. Reinforcing the bullish momentum, the stock advanced almost two per cent on Monday. Daily MACD has signalled a buy and is featuring in the positive territory indicating upward momentum. We are bullish on the stock from a short-term horizon. We expect the stock to move higher until it touches our price target of Rs 207.5 or Rs 213.5 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 195 levels. (Source: http://www.thehindubusinessline.com ).