We recommend a buy in Exide Industries at current market price. It is clear for the weekly chart of Exide Industries that it has been on a steady long-term uptrend since it broke-out of a significant resistance level of Rs 48 in July 2007.

However, we see that after testing the higher resistance at Rs 85, the stock is currently in a corrective mode. Recently, the stock found support at 50-day moving average line (Rs 71) and reversed from that juncture.

The weekly momentum indicator is featuring in the bullish region.

The weekly moving average convergence divergence lines are steadily rising in the positive territory, indicating bullishness. On the downside, the immediate support for the stock is at Rs 67 and the next support is at Rs 56 levels. We expect the stock to resume its uptrend and rally further to the immediate resistance level of Rs 85 in the short-term.

Short-term investors can buy the stock while keeping the stop-loss at Rs 71.

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