Technical Analysis

Equitas Holdings (₹128.2): Buy

Yoganand D | Updated on July 18, 2019 Published on July 18, 2019

Investors with a short-term view can buy the stock of Equitas Holdings at current levels. The stock had jumped 5.6 per cent with good volume on Wednesday, breaking a key resistance at ₹125 as well as 200-day moving average line.

Since October 2018 low of ₹78, the stock has been in an intermediate-term uptrend. But it encountered a resistance at ₹143 in early June, and began to decline. The stock was on a corrective decline until last week.

Equitas took support at ₹115 and bounced up triggered by positive divergence in the daily relative strength index and price rate of change. With the recent rally, the stock appears to have resumed the intermediate-term uptrend. It hovers well above the 21- and 200-day moving averages. The daily RSI is on the brink of entering the bullish zone from the neutral region and the weekly RSI features in the neutral region. Moreover, the daily price rate of change indicator features in the positive terrain implying buying interest.

Outlook is bullish for the stock. Short-term targets are ₹133.5 and ₹136 levels. Traders can buy the stock with a stop-loss at ₹125.5.

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

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Published on July 18, 2019
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