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We recommend a buy in the stock of PVR from a short-term perspective. It is seen from the charts of the stock that since encountering resistance at around Rs 193 in last September, it was on an intermediate-term downtrend until it found support at its long-term base level of Rs 95 in March. However, the stock changed its trend triggered by positive divergence in daily relative strength index and moving average convergence divergence indicators.
On May 31, the stock jumped 10 per cent emphatically breaking through its intermediate-term downtrend line. The stock is hovering well above its 21- and 50-day moving averages. It penetrated its immediate resistance at Rs 110 by moving up four per cent accompanied by above average volumes on Wednesday. Daily RSI is featuring in the bullish zone and weekly RSI is inching higher in the neutral region. Daily MACD is moving higher in line with the stock price and is hovering in the positive territory signalling upward momentum.
Our short-term forecast on PVR is bullish. We anticipate its current uptrend to prolong until it hits our price target of Rs 117.5 or Rs 121 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 110.5 levels.
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