ICSA India

We recommend a buy in ICSA India from a short-term perspective. It is evident from the charts that the stock was in a medium-term downtrend from a June high of Rs 214 to a July low of Rs 138. The band between Rs 138 and Rs 150 is a key long-term support. The stock is currently trading above its 21 and 50-day moving averages. Moreover, it appears to have resumed its intermediate-term uptrend that has been in place since the March low of Rs 48. The daily relative strength index (RSI) has entered in the bullish zone and the weekly RSI is on the brink of entering into this zone. Besides, both daily and weekly moving average convergence and divergence indicators are hovering in the positive territory. From the short-term perspective we are bullish on the stock. We expect its rally to prolong until it knocks our price target of Rs 206 in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 177.

via BL