Today's Pick

Today’s Pick: Buy Fortis Healthcare (₹172.3)

Yoganand D | | Updated on: Jan 27, 2021

Bengaluru / Karnataka : A scene at Fortis hospital during one day strike by doctors demanding security after the recent assaults on doctors by the patients' relatives in Kolkata on 17 June 20129. Photo: V Sreenivasa Murthy/ The Hindu | Photo Credit: V Sreenivasa Murthy

Investors with a short-term perspective can buy the stock of Fortis Healthcare at current levels.

The stock gained 4 per cent with above-average volume on Monday, breaking above a key barrier at ₹170.

This rally has strengthened the medium-term uptrend that has been in place since the stock took support at ₹123 in late October 2020.

While trending up, the stock decisively breached the key resistances at ₹140 and ₹160 in November 2020 and early January 2021, respectively.

But it met with the next hurdle at ₹180 in early January and had been on a near-term corrective decline until last week.

Taking support at ₹162, where the medium-term uptrend-line also lies, the stock began to trend upwards last week.

There has been an increase in daily volume over the past two trading sessions. Moreover, the stock trades well above the 21- and 50-day moving averages.

The daily relative strength index (RSI) has re-entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone.

Further, the daily rate of change indicator has entered the positive terrain, implying buying interest.

The short-term outlook is bullish for the stock of Fortis Healthcare.

It has the strength to extend the uptrend and reach the price targets of ₹179.5 and ₹183 in the coming trading sessions.

Traders with a short-term view can buy the stock with a stop-loss at ₹168.5.

Note: The recommendations are based on technical analysis. There is risk of loss in trading

Published on January 27, 2021
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