Investors with a short-term perspective can buy the stock of hospitality major EIH at current levels. The stock gained 7 per cent on Friday, pushing its weekly gains to 11.6 per cent. Following a three-month sideways consolidation between Rs 52 and Rs 60, the stock is emerging out of this range-bound movement. The recent surge has slightly breached the upper boundary of the sideways range. Volumes have been increasing over the past four trading sessions. Moreover, the stock’s recent rally has decisively breached its moving average compressions around Rs 55. It is now hovering well above its 200-day moving average. The indicators in the daily chart are featuring in the bullish zone backing the bullish momentum. Indicators in the weekly chart are moving higher in line with the stock price and are on the brink of entering the positive territory. With the bullish momentum in force and indicators displaying strength, the stock’s short-term forecast is optimistic. Traders with short-term perspective can buy it with a stop-loss at 58.5. Upside targets are Rs 63.5 and Rs 65.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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