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We recommend a buy in the stock of MT Educare from a short-term horizon. It is seen from the charts of the stock that since taking support around Rs 84 in mid-August 2012, it has been in an intermediate-term uptrend. In late November, the stock emphatically broke through its significant resistance at Rs 115 and thereafter started moving sideways.
On Thursday, the stock jumped almost 7 per cent with extraordinary volumes, decisively moving out of its sideways consolidation. With this rally, the stock appears to have resumed its intermediate-term uptrend. It is hovering well above its 21- and 50-day moving averages. Both daily and weekly relative strength indices are featuring in the bullish zone implying upward momentum. The daily as well as weekly price rate of change indicators are hovering in the positive territory indicating buying interest.
Considering the stock's recent bullish momentum and intermediate-term uptrend is still in place we are optimistic on the stock from a short-term horizon. We expect its rally to continue and reach our price target of Rs 143 or Rs 146 in the approaching trading sessions. Traders with a short-term perspective can consider buying the stock with stop-loss at Rs 134.5 levels.
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