We recommend a buy in the stock of Geometric from a short-term perspective. It is apparent from the charts of the stock that it has been on a long-term uptrend ever since bottoming out in August 2011 at around Rs 35. Following sideways consolidation phase, the stock broke out of significant resistance at Rs 80 in late July this year. Both medium and short-term trends are up for the stock. It is hovering well above its 50- and 200-day moving averages.

On Thursday, the stock advanced three per cent accompanied by above average volume, and this up move has reinforced bullish momentum. The daily as well as weekly relative strength indices are featuring in the bullish zone. Likewise, moving average convergence divergence indicator is hovering in the positive area implying upward momentum.

We don’t notice any signs of trend reversal yet and we believe that the stock's medium-term uptrend is still in place. We are bullish on the stock from a short-term horizon. We anticipate its up move to continue and reach our price target of Rs 110 or Rs 113 in the approaching trading sessions.

Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 103.

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