Investors with short-term perspective can consider buying the stock of Eros International Media. Since its listing in October 2010, the stock has been on an intermediate-term downtrend. However, after registering a life-time low at Rs 124 in late March, the stock changed its direction. This reversal was backed by a positive divergence in the daily as well as weekly relative strength index. The stock has been on a gradual uptrend since its March low. Last week, the stock took support around Rs 136 and bounced upwards.

On Tuesday, the stock advanced 4.6 per cent breaching its 21- and 50-day moving averages emphatically. We notice that there has been an increase in volumes over the past five trading sessions. The daily RSI is hovering around 58 and is on the brink of entering in to the bullish zone. The weekly RSI is inching higher in the neutral region towards the bullish zone. Daily moving average convergence divergence indicator has signalled a buy and has started to move higher in line with the stock price.

We are bullish on the stock from a short-term perspective. We anticipate it to rally until it reaches our price target of Rs 153 or Rs 157 in the upcoming trading sessions. Traders can consider buying the stock with stop-loss at Rs 143.5.

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