We recommend a buy in the stock of OnMobile Global from a short-term perspective. It is evident from the charts of the stock that ever since hitting a 52-week low at Rs 28.7 in early July, the stock has been trending upwards. From this low, it has been on a modest medium-term uptrend. Reinforcing this uptrend, the stock jumped nine per cent decisively breaching its 21- and 50-day moving averages on September 18. Further, the stock advanced more than six per cent surpassing its immediate resistance at Rs 44 on Wednesday.

We notice that there is an increase in daily volumes during advance session of the stock's current up move, signifying strength in the uptrend. The stock is hovering well above its 21- and 50-day moving averages. The daily relative strength index is featuring in the bullish zone and weekly RSI is inching higher in the neutral region towards the bullish zone. The daily moving average convergence divergence indicator is moving higher in line with the stock price and is hovering in the positive territory implying upward momentum.

We are bullish on the stock from a short-term perspective. We expect its rally to prolong and reach our price target of Rs 47.40 or Rs 48.40 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock while maintaining stop-loss at Rs 44.40.

social-fb COMMENT NOW