Today's Pick

Future Capital Holdings (Rs 146.7): Buy

| | Updated on: Nov 03, 2011
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We recommend a buy in the stock of Future Capital Holdings from a short-term perspective. It is seen from the charts of the stock that after peaking out on July 29 at Rs 199, the stock was on a medium-term downtrend until it found support at its long-term base at around Rs 125 in early October. The stock subsequently bounced up and has been on a nascent short-term uptrend.

On October 20, the stock jumped five per cent breaking through its medium-term downtrend-line conclusively. Further, reinforcing the uptrend, the stock advanced more than four per cent with good volumes, breaching its immediate resistance at around Rs 144 on Thursday. With this up move, the stock has crossed over its 50-day moving average. The 14-day relative strength index is likely to enter into the bullish zone and weekly RSI is inching higher in the neutral region towards the bullish zone.

Daily moving average convergence divergence indicator is rising in line with the stock price and weekly MADC is displaying a positive divergence supporting the stock's trend reversal. We are optimistic on the stock from a short-term perspective. We anticipate the stock to rally until it hits our price target of Rs 151.5 or Rs 155.5 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 143.

Published on November 03, 2011

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