We recommend a buy in the stock of Eclerx Services from a short-term horizon. It is apparent from the charts of the stock that following an intermediate downtrend from its September 2012 peak of Rs 900, the stock found support at Rs 600 in early March 2013. After testing the significant long-term support at Rs 600 in late March and again in May, the stock stated moving upwards. This trend reversal is backed by positive divergence in daily and weekly moving average convergence divergence indicator. On Friday, the stock surged 5.5 per cent accompanied by good volume breaching its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region towards this zone. The daily MACD has given a buy signal and is about to enter the positive territory from the negative territory. Both daily and weekly price rate of change indicators are featuring in the bullish terrain implying buying interest. We are bullish on the stock from a short-term perspective. We expect its rally to continue and reach our price target of Rs 677 or Rs 690 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 637 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.