Comments
We recommend a buy in the stock of Jet Airways (India) from a short-term perspective. It is apparent from the charts of the stock that after encountering resistance at Rs 688 in late April, the stock started to decline. Since then, it has been on a medium-term downtrend. Nevertheless, the stock’s significant long-term support in the band between Rs 280 and Rs 300 arrested its decline in late August.
Triggered by positive divergence in daily relative strength index and moving average convergence divergence indicator, the stock has started to trend upwards. The stock breached its immediate resistance and 21-day moving average at Rs 317 by jumping 6 per cent on Wednesday. We notice that there is an increase in daily volume over the past three trading sessions. The daily RSI is moving higher in the neutral region towards the bullish zone and weekly RSI is recovering from the oversold levels. The daily price rate of change indicator has entered the positive terrain implying buying interest.
Taking a contrarian stance on the stock, we are bullish on it from a short-term perspective. We anticipate its rally to continue and hit our price target of Rs 342 or Rs 349 in the ensuing trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 322 levels.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.