Glenmark Pharma (Rs 491.35): Buy

I recommend a buy in Glenmark Pharmaceuticals from a short-term perspective. From the charts of Glenmark Pharmaceuticals, we see that the stock has been on long-term uptrend since its October 2006 low of Rs 148. However, after marking a life high of Rs 623 in mid-December 2007, the stock began to decline. This decline of the stock retraced 38.2 per cent fibonacci retracement of its long-term uptrend and found support at Rs 425-450 range recently. Subsequently, the stock commenced to move up penetrating the medium-term down trendline and the 21-day moving average. The daily momentum indicator is rising towards the bullish zone in the neutral region. The daily moving average convergence divergence is on the brink on entering the positive territory indicating further bullishness. The long-term up trend of the stock is intact.I am bullish in the stock from a short-term perspective. I expect the stock to move up to our price target of Rs 570 in the short-term. Investors with short-term perspective can buy the stock, while keeping the stop-loss at Rs 456.