Talwalkars Better Value Fitness gained 6.6 per cent, strengthening its medium-term uptrend on Thursday. The stock was resilient over the past two weeks and outperformed the market by trending northwards. Investors with a short-term horizon can buy the stock at current levels. Since the August 2013 low of ₹110, the stock has been on a long-term uptrend forming higher peaks and troughs. The medium- as well as short-term trends are up for the stock. In early November, the stock decisively broke through a significant long-term resistance at around ₹222. This level has now turned into a significant support level that can cushion the stock. It is hovering well above its 21- and 50-day moving averages.
The daily relative strength index has re-entered the bullish zone. The stock can extend its current rally and reach our price targets of ₹283 and ₹289 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹266.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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