Investors with medium-term perspective can consider buying Asahi India Glass. Its long-term downtrend that began at the January 2008 high of Rs 137 halted in the range between Rs 33 and Rs 35 this March.
Since then, the counter has been on an intermediate-term uptrend. Trend reversal was triggered by the positive divergence in the weekly moving average convergence and divergence indicator and monthly relative strength index reaching the oversold levels.
The stock made a weekly gain of 20 per cent breaking through a significant resistance at Rs 60 and is currently trading above its 21- and 50-day moving averages.
The momentum indicators are showing signs of optimism. We believe that the stock has potential to rally to Rs 90 in the medium-term. Investors can buy while maintaining Rs 51 as stop-loss. Short-term traders can buy with a target of Rs 71 and Rs 61 as stop.
