*Godrej Industries (Rs 176.1): Buy *

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 We recommend a buy in the stock of Godrej Industries from a short-term
horizon. After recording a 52-week high of Rs 218 in December 2009, the
stock was on a medium-term downtrend until it found support at Rs 140 in
late March 2010, that is a significant long-term support. The stock once
again took support from this band in June and started to move higher. It
conclusively breached its 50-day moving average as well as the medium-term
downtrend-line in mid-June, signalling the start of fresh up move. However,
after pausing around its 200-day moving and short-term resistance at Rs 170
for a week, the stock penetrated this hurdle by jumping 5 per cent on July
8. We notice that the stock's ongoing uptrend is backed by good volume
during its advance days. Both daily relative strength index and moving
average convergence divergence indicators feature in the positive territory.
The weekly RSI and MACD are on the brink of entering into the positive
territory. Our short-term outlook on the stock is bullish. We expect the
stock to rally until it hits our price target of Rs 184 or Rs 190 in the
short-term. Traders with short-term perspective can buy the stock while
maintaining stop-loss at Rs 169.

 Yoganand D
http://www.thehindubusinessline.com/2010/07/09/stories/2010070953621100.htm

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