Siemens

We recommend a buy in Siemens from a short-term trading perspective. It is clearly visible from the charts that after encountering resistance around Rs 322 in early January, it witnessed a sharp tumble. However, the stock found support at Rs 186 that was also the 52-week low. Since then, the stock has been on a gradual short-term uptrend. On February 11, the stock gained bullish momentum by surging 7 per cent. This gain conclusively penetrated the stock’s 21-day moving average. We notice that there is an increase in volume over the past three trading sessions. The daily relative strength index (RSI) is rising in the neutral region and the weekly RSI is displaying prolonged positive divergence. The price rate of change (ROC) indicator is rising in the positive territory indicating buying interest. We are bullish on the counter from a short-term perspective. We expect the going-up move to continue until it hits our price target of Rs 245. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 209.