Investors with a short-term perspective can buy Talwalkars Better Value Fitness, a chain of fitness centres. The stock has been on a medium-term uptrend from its 52-week low of Rs 110 recorded in late August 2013. In early October, the stock decisively broke through its 50-day moving average as well as a key resistance at Rs 130. Since then, short-term trend has been up for the stock. Following a minor correction, the stock took a support at Rs 145 and resumed its uptrend by gaining 7 per cent with good volumes on November 8. The 200-day moving average poised at around Rs 145 also cushioned the stock. Indicators on the daily chart continue to feature in the bullish zone; on the weekly chart too, these indicators have entered the bullish zone from the neutral region implying upward momentum. As the stock has resumed its medium-term uptrend and indicators continue to hover in the positive area, it has strength to widen this rally in the short-term. Our price targets are: Rs 162.5 or Rs 165.5. Buy the stock with a stop-loss at Rs 153.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)