Today's Pick

Eros International Media (Rs 271.9): Buy

| Updated on: Oct 17, 2011
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We recommend a buy in the stock of Eros International Media from a short-term perspective. It is apparent from the charts of the stock that ever since bottoming out in March at Rs 124, the shock has been on an intermediate-term uptrend shaping higher peaks and higher troughs. After taking support from its key short-term base level at around Rs 230 in late September and early October, the stock resumed its uptrend.

Medium- and short-term trends are up for the stock. On Monday, the stock broke through its immediate resistance at around Rs 260 by gaining almost five per cent. We notice that there is an increase in volumes over the past five trading sessions. The stock is hovering well above its 21- and 50-day moving averages. Both daily and weekly relative strength indices are featuring in the bullish zone.

Daily moving average convergence divergence indicator has signalled a buy and is inching higher in the positive territory. Considering that the stock's medium-term uptrend line is in tact and its recent breakout, we are bullish on the stock. We expect its upward momentum to prolong and reach our price target of Rs 280 or Rs 288 in the upcoming trading sessions. Traders with short-term horizon can buy the stock with stop-loss at Rs 265.

Published on October 17, 2011

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