We recommend a buy in the stock of Prime Focus from a short-term perspective. It is seen from the charts of the stock that it has been trending higher since its March low, taking support from a significant long-term base level of Rs 40. Short-term trend is also up from its June trough of Rs 48. While trending higher, the stock jumped 18 per cent with heavy volumes on July 1, emphatically penetrating its moving average compression (21-, 50- and 200-day moving averages).

Further, reinforcing its bullish momentum, the stock broke through its immediate key resistance at Rs 65 by surging almost five per cent on Thursday. There has been an increase in volume over the past five sessions. The daily relative strength index is featuring in the bullish zone and weekly RSI is on the brink of entering into the bullish zone from the neutral region.

Daily moving average convergence divergence indicator has signalled a buy and is likely to enter the positive territory. Weekly MACD is also hovering in the positive territory. Taking into account that the stock has conclusively broken its key resistance and its current uptrend is strong, we are bullish on it from a short-term perspective. We anticipate it to rally further until it reaches our price target of Rs 70 or Rs 72 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 65.5 levels.

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