*Gitanjali Gems (Rs 128.9): Buy *

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 We recommend a ‘buy' in Gitanjali Gems from a short-term trading
perspective. The stock gained 3.4 per cent in the last trading session
accompanied by above-average volumes. It has gained 10 per cent in the last
three trading sessions. The stock has been in a sideways movement between Rs
90 and Rs 150 since last June. Within this sideways move, a short-term
uptrend is in motion in the stock since the May low of Rs 92.5. Third leg of
this uptrend is currently in motion that can take the stock higher towards
its June 2009 peak once more.

Momentum indicators in the daily chart are positioned in the bullish zone.
Both the 10-day rate of change oscillator as well as the moving average
convergence divergence oscillator is rising from the zero line implying that
the up-move can extend a little further. We expect the stock to move higher
to Rs 133 or Rs 138 in the ensuing sessions. Traders can buy the stock with
the stop at Rs 125.

Lokeshwarri S.K.

BL Research Bureau




http://www.thehindubusinessline.com/2010/06/24/stories/2010062451171100.htm

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