We recommend a buy in the stock of Hathway Cable & Datacom from a short-term perspective. It is apparent from the charts of the stock that ever since it bottomed out at its September 2011 low of Rs 72, it has been on an intermediate-term uptrend. But, the stock met with a key resistance at Rs 185 in February and was consolidating sideways between Rs 150 and Rs 185 until last week.

On Monday, the stock emphatically broke out of its sideways band and key resistance at Rs 185 by jumping six per cent. We notice that there is an increase in volumes over past four trading sessions. The stock is hovering well above its 21- and 50-day moving averages. Both daily as well as weekly relative strength indices are featuring in the bullish zone. Similarly, the daily and weekly price rate of change indicators are hovering in the positive terrain implying buying interest.

The stock's intermediate-term uptrend-line is in tact. Our short-term outlook on the stock is bullish. We expect its up move to prolong and reach our price target of Rs 206 or Rs 212 in the upcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 194.

(This article was published on July 9, 2012)
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