We recommend a buy in Sun TV Network from a short-term perspective. It is apparent from the charts of the stock that since taking support from its long-term base at Rs 220 in June 2012, it has been on an intermediate-term uptrend. Medium as well as short-term trends for the stock are up. Last week, Sun TV took support at around Rs 419 and resumed its uptrend. It is trading well above its 21- and 50-day moving averages. The daily relative strength index is on the brink of entering the bullish zone. The weekly RSI is featuring in the bullish zone. The daily as well as weekly moving average convergence divergence indicators are hovering in the positive territory. Both the daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest. We expect the stock to rally to Rs 457.5 or Rs 464.5. Traders with short-term horizon can buy the stock with stop-loss at Rs 437.5.
Sun TV Network (Rs 444.2) - BUY
January 27, 2013: