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Investors with a short-term perspective can buy Eros International Media at current levels. The stock found support in the band between Rs 105 and Rs 115 in August 2013 after an intermediate-term downtrend. Subsequently, the stock changed direction and has been on a medium-term uptrend. Significant support at Rs 155 and 200-day moving average around this level provided base for the stock’s short-term corrective decline.
On Monday, the stock surged 8 per cent accompanied by above average volume, breaching its 21- and 50-day moving averages. The relative strength index on the daily chart has entered the bullish zone from the neutral region indicating positive momentum. Both daily and weekly price rate of change indicators are hovering in the positive territory implying buying interest. The short-term outlook is bullish. It can extend the uptrend to Rs 187 and then to Rs 191 in the coming trading sessions. Buy the stock while maintaining a stop-loss at Rs 176.
Yoganand D.
BL Research Bureau
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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