Investors with short-term trading perspective can consider buying the stock of Navneet Publications. The stock is in a strong uptrend since last March that helped it recoup the entire losses made in 2008.

A short-term correction is, however, in progress currently from the recent peak at Rs 75.8.

This correction halted at the support around Rs 60 and the stock reversed sharply higher on Monday accompanied by strong volumes.

A bullish engulfing candle is apparent in the daily candlestick chart. This move also helped the stock close above its 21 and 50-day moving averages.

Oscillators in the daily chart are beginning to signal a buy. Rate of change oscillator moved above the zero line into bullish territory, while relative strength index is rising in the neutral region.

The moving average convergence divergence oscillator in the daily chart registered a buy signal on Monday. The stock has the potential to rise to Rs 68 or Rs 70 in the days ahead. Short-term investors can buy the stock with stop at Rs 65.

Lokeshwarri S K

BL Research Bureau

The analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. The stop-loss level provided with the recommendation is important. The original view would stand negated if the stop-loss level is breached. There is a risk of loss in trading