We recommend a buy in the stock of Hathway Cable and Datacom from a short-term perspective. It is seen from the charts of the stock that ever since it bottomed out at its September 2011 low of Rs 72, the stock has been on an intermediate-term uptrend. However, the stock encountered a key resistance around Rs 185 in February and has been on a medium-term sideways consolidation between Rs 150 and Rs 185, with an upward bias .
On Monday, the stock climbed almost four per cent, breaching its 21- and 50-day moving averages. The daily as well as weekly relative strength indices are inching higher in the neutral region towards the bullish zone. Both the daily and weekly price rate of change indicators have entered the positive terrain from the negative zone, implying buying interest.
Considering that the stock's intermediate-term uptrendline is intact, we are bullish on the stock. We anticipate its up move to prolong and reach our price target of Rs 176 or Rs 182 in the forthcoming trading sessions. Traders with a short-term perspective can consider buying the stock with stop-loss at Rs 165.