We recommend a buy in the stock of D B Realty from a short-term perspective. It is apparent from the charts of the stock that after consistently taking support at around Rs 70, the stock started trending higher in early October 2012. The stock subsequently breached its moving average compression (21-, 50- and 200-day moving average).
While trending higher the stock emphatically broke through its key resistance at around Rs 95 which later turned into key support and provided base in late October. The stock advanced almost 5 per cent strengthening its bullish momentum on Tuesday.
The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is featuring in the bullish zone. Both daily and weekly moving average convergence divergence indicators are hovering in the positive territory. We are bullish on the stock from a short-term perspective.
We anticipate its rally to extend and hit our price target of Rs 111.5 or Rs 113.5 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 104.5.