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We recommend a buy in the stock of Eros International Media from a short-term perspective. It is evident from the charts of the stock that after retracing 61.8 per cent Fibonacci retracement level of its prior up move (from Rs 124 to Rs 277), the stock found support at around Rs 180 in late February.
Subsequently, the stock changed its direction and has been on a short-term uptrend. On Monday, the stock jumped 3.7 per cent breaching its twin resistances (downtrend-line and a key resistance) at Rs 195 conclusively. We note that there is in increase in volume over the past two trading sessions. The stock has moved above its 50-day moving average and is hovering well above 21-day moving average. The daily moving average convergence divergence indicator has signalled a buy and is inching higher in line with the stock price.
The daily relative strength index is on the brink of entering into the bullish zone and weekly RSI is climbing higher in the neutral region towards the bullish zone. The daily price rate of change indicator is featuring in the positive territory signalling buying interest. We are bullish on the stock from a short-term perspective. We expect its up move to continue and touch our price target of Rs 208.5 or Rs 214.5 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 196.5.
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