The stock of multiplex operator Inox Leisure is a good trading pick ahead of the Diwali weekend.
After hitting its August 2013 low of Rs 50.6, the stock has been on a medium-term uptrend. The stock decisively soared past its long-term moving average and a key resistance in early September. After testing the resistance at Rs 88 several times, the stock finally broke past it on Wednesday with a gain of eight per cent. Volumes too have shot up in the past two trading sessions. With this move, the stock’s short-term outlook has turned positive. It is hovering well above its 50- and 200-day moving averages. The medium-term uptrend line is still intact. The indicators on the daily chart have entered the bullish zone from the neutral region. Those on the weekly chart continue to be bullish signalling the stock’s upward momentum. Inox can extend its recent up-move to hit the price target of Rs 95 or Rs 97 in the coming trading sessions. Traders can add it to their shopping list with a stop-loss at Rs 89.4.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)