The stock of Fortis Healthcare jumped 9.5 per cent, accompanied by above average volume on Friday, conclusively breaking above a key long-term resistance in the band between ₹160 and ₹165 that had limited the rally in February 2020. The ongoing rally has strengthened the bullish momentum and provides investors with a medium-term perspective an opportunity to buy the stock at current levels.

The stock's downtrend , which commenced after it encountered a key resistance at ₹165 in February 2020, found support at ₹114 in last May. Subsequently, the stock changed direction and has been on an intermediate-term uptrend since then. While trending up, the stock had conclusively breached a key resistance at ₹140 in early November and continued to trend upwards. Both medium- as well as short-term trend are up for the stock. Reinforcing the uptrend, the stock had surged 15 per cent in the past week, accompanied by good volumes. The stock trades well above the 50- and 200-day moving averages.

The daily and the weekly relative strength indices are hovering in the overbought territory, implying that a minor correction is on the cards which is healthy from a long-term perspective. So, investors with a medium-term perspective can buy the stock at current as well as on minor correction.

Further, the daily and the weekly price rate of change indicators are featuring in the positive territory, implying buying interest. Overall, the medium-term outlook is bullish for Fortis Healthcare. It has potential to trend upwards and reach the price targets of ₹200 and ₹210 with a minor pause at around ₹200 over the medium term. Traders with a medium-term view can buy the stock with a stop-loss at ₹159.

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