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We recommend a buy in Dish TV India from a short-term perspective. It is clearly visible from the charts of Dish TV India that it had been on a medium-term downtrend between April and July (from a high of Rs 66 to Rs 26). After recording a 52 week low at Rs 26 in early July, the stock reversed and began to trend upward.

This reversal was triggered by a positive divergence in the daily relative strength index. On August 4, the stock jumped 9 per cent breaking through the medium-term down trendline.

Subsequently, on August 7, the stock surged 11 per cent strengthening the up move. We observe heavy volume over the past four trading sessions. The daily RSI has entered into the bullish zone from the neutral region.

The moving average convergence and divergence is on the brink of entering the positive territory.

The stock is trading well above its 21- and 50-day moving averages. We are positive on the stock in the short-term.

We anticipate the stock to move up until it hits our price target of Rs 42 in the approaching trading sessions. Traders with short-term perspective can buy the stock, while maintaining a stop-loss at Rs 35.50.

BL Research Bureau

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