The stock of Fortis Healthcare surged almost 4 per cent with above average volume, decisively closing above its 21- and 50-day moving averages on Thursday. Investors with a short-term perspective looking for a trading opportunity can consider buying the stock at current levels. After decisively breaking through a significant long-term resistance level at around ₹123 in February, the stock extended its uptrend. However, the stock encountered a key resistance at ₹181 in early April and started moving sideways with a positive bias.

Both the medium- and short-term trends are up for the stock. The daily relative strength index is likely to enter the bullish zone from the neutral region whereas the weekly RSI continue to feature in the bullish zone. The daily as well as weekly price rate of change indicators are hovering in the positive terrain implying buying interest. A buy signal has emerged on the daily moving average convergence divergence indicator.

The overall outlook is bullish for the stock. It can continue its upward journey and reach the price target of ₹177 and ₹180.5 in the ensuing sessions. Buy the stock with a stop-loss at ₹166.5.

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

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