We recommend a buy in the stock of Dish TV India from a short-term horizon. It is seen from the charts of the stock that after peaking out from Rs 94 in July this year, the stock has been on a medium-term downtrend. In early November, the stock fell steeply. But the key long-term support band between Rs 58 and Rs 60 halted the stock's fall in mid-November. Subsequently, the stock changed its direction triggered by positive divergence in daily relative strength index and the stock price reaching the lower boundary of the Bollinger bands indicating that it is oversold.

The stock is currently moving northwards reversing from its short-term trend. We observe that there is an increase in daily volume over the past five trading sessions. On Tuesday, the stock rose four per cent with above average volume, penetrating its immediate significant resistance at around Rs 66. Daily relative strength index is inching higher in the neutral region and weekly RSI has entered into the neutral region from the bearish zone.

The daily moving average convergence divergence indicator has signalled a buy. As the stock is rebounding from its key long-term support band backed by positive divergence in the daily RSI, we are bullish on the stock from a short-term perspective. We anticipate it to continue its up move and touch our price target of Rs 70 or Rs 72 in the ensuing trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 66.

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