We recommend a buy in the stock of Reliance Mediaworks from a short-term perspective. It is evident from the charts of the stock that it has been on a medium-term uptrend since knocking a 52-week low at Rs 49 in late May this year. Following a near-term correction, the stock found support around Rs 61 in late August and continued its up move.

On Monday, the stock gained 13 per cent breaching its 200-day moving average and key long-term resistance at Rs 70. We notice that there is an increase in daily volumes over the past three trading sessions. Further, this up move has reinforced the stock's medium-term uptrend. The stock is hovering well above its 21- and 50-day moving averages.

The daily relative strength index has entered into the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region towards the bullish zone. The daily moving average convergence divergence indicator has signalled a buy and is moving higher in the positive territory. Both daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest.

We are bullish on the stock from a short-term perspective. We expect its up move to continue and reach our price target of Rs 79 or Rs 84 in the ensuing trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 76.4.

comment COMMENT NOW