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We recommend a buy in the stock of Jet Airways from a short-term perspective. It is seen from the charts of the stock that it had changed direction in late December 2011 from the low of Rs 167. This was helped by positive divergence in daily relative strength index and price rate of change indicator. Since then, the stock has been on a medium-term uptrend.
Following a near-term correction, the stock took support from its key base level around Rs 278 early last month. The stock, thereafter, resumed its uptrend and has been on a short-term uptrend as well. The stock is trading well above its 50- and 200-day moving averages. Strengthening the uptrend, it surged five per cent breaching its immediate resistance at Rs 350 on Wednesday.
We notice that there is an increase in volume over past two sessions. The stock's medium-term uptrendline is intact. We are bullish on the stock from a short-term horizon and anticipate its rally to maintain. Traders with short-term horizon can consider buying the stock for a target of Rs 370 or Rs 380 with stop-loss at Rs 348.
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