Today's Pick

Prestige Estates Projects (Rs 109.8): BUY

Yoganand D. | Updated on November 15, 2017

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We recommend a buy in the stock of Prestige Estates Projects from a short-term perspective. It is seen from the charts of the stock that after registering an all-time low at Rs 57.5 in December 2011, it reversed northwards. Since then, the stock has been on an intermediate-term uptrend. However, the stock encountered resistance at Rs 130 in mid-April and retraced 38.2 per cent Fibonacci retracement level of Rs 102.

Recently, the stock took support around Rs 102 and started to move higher. On Tuesday, the stock advanced six per cent accompanied by above average volumes, breaching a key resistance around Rs 106. This rally has also breached the stock's 21- and 50-day moving averages and reinforced the bullish momentum. The daily and weekly relative strength indices are inching higher in the neutral region towards the bullish zone. The daily moving average convergence divergence indicator has signalled a buy.

The daily price rate of change indicator has entered into the positive terrain and its weekly indicator is hovering in this terrain implying buying interest. The stock's intermediate-term uptrend-line is in tact. We anticipate its up move to carry on and reach our price target of Rs 113.5 or Rs 116.5 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 106.5.

Published on May 29, 2012

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