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We recommend a buy in the stock of Prime Focus from a short-term perspective. It is evident from the charts of the stock that after taking support from its long-term base zone between Rs 40 and Rs 42 in March 2011, the stock bounced up. The stock appears to have resumed its long-term uptrend that has been in place since early 2009. Following a month of sideways movement in a narrow range between Rs 53 and Rs 59, the stock breached through this range on Monday by surging 7 per cent. The stock has penetrated its 21-, 50 and 200-day moving averages . We notice that there has been an increase in volumes over the past three trading sessions. The 14-day relative strength index is on the brink of entering into the bullish zone and weekly RSI is inching higher towards the bullish zone. Daily moving average convergence divergence indicator has signalled a buy.
Weekly MACD is featuring in the positive territory. Daily and weekly price rate of change indicators are featuring in the positive territory indicating buying interest. We are bullish on the stock from a short-term perspective. We anticipate it to move higher and reach our price target of Rs 62 or Rs 63.5. Traders with short-term horizon can buy the stock with stop-loss at Rs 58 levels.
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