Investors with short-term trading perspective can buy the stock of Kolte-Patil Developers. The stock is in an intermediate-term uptrend since last March. Following a short-lived correction last June, the stock has been moving sideways with an upward bias. Formation of higher troughs and higher peaks over the last six months is a positive from the intermediate-term perspective. The recent correction in the stock from its January peak halted just above its intermediate-term uptrend line as well as its 200-day exponential moving average.
The stock is also halting at the 38.2 per cent retracement of its uptrend from March 2009 lows, which denotes strength. The 10-day rate of change oscillator is just moving up towards the zero line while the 14-day relative strength index is poised at 49 indicating that this could be the beginning of a short-term up-move in the stock. The current up-move in the stock that commenced on Monday has the potential to take the stock price higher to Rs 58 or Rs 62 in the near-term. Investors can buy the stock with stop at Rs 54.5.
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