We recommend a buy in the stock of Inox Leisure from a short-term horizon. It is apparent from the charts of the stock that since bottoming out in December 2011 low at Rs 35.6, it started trending upwards. But in February, the stock encountered resistance at Rs 57 and has been on a sideways consolidation in a broad range between Rs 46 and Rs 57. The stock reversed higher taking support at Rs 49 last week.
On Wednesday, it zoomed five per cent reinforcing bullish momentum. We notice that there is an increase in volumes over the past two trading sessions. The stock is hovering well above its 50- and 200-day moving averages. The daily relative strength index is on the brink of entering into the bullish zone from the neutral region. Its weekly RSI is moving higher in the neutral region towards the bullish zone. Both daily and weekly price rate of change indictors are featuring in the positive territory implying buying interest. The stock's sideways consolidation is positive from a medium-term perspective and short-term outlook is also bullish. We anticipate the stock to rally and reach our price target of Rs 55 or Rs 57 in the upcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 51.