We recommend a buy in the stock of Prestige Estates Projects from a short-term perspective. It is evident from the charts of the stock that since bottoming out at its December 2011 low of Rs 57, the stock has been on a long-term uptrend. Medium-term trend is also up for the stock. Its significant long-term base band between Rs 155 and Rs 160 cushioned the stock in the previous week. Resuming the medium-term uptrend, the stock gained 8 per cent with above average volume on Thursday.
The daily relative strength index is moving higher in the neutral region and weekly RSI has entered the bullish zone from the neutral region. The daily price rate of change indicator has entered the positive terrain implying buying interest.
We are bullish on the stock from a short-term perspective. We expect its up-move to continue and reach our price target of Rs 184 or Rs 187.5 in the upcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 173.2 level.