Technical Analysis

Equitas Holdings (₹135.7): Buy

Yoganand D BL Research Bureau | Updated on May 20, 2019 Published on May 21, 2019

Investors with a short-term perspective can buy the stock of Equitas Holdings at current levels. The stock has been in a medium-term uptrend since taking support at ₹78 in late October 2018. The stock took support at ₹110 in February this year and continued to trend upwards. After a near-term corrective decline, the stock found support at around ₹125 in early May and resumed the uptrend. The 200-day moving average had cushioned the stock at ₹125 and it hovers well above this average now. Moreover, the stock also trades well above 21- and 50-day moving averages.

On Monday, the stock jumped 5.4 per cent accompanied by good volume breaching a key resistance at ₹130. This rally has strengthened the medium-term uptrend. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region with an upward bias. The daily as well as the weekly price rate of change indicators hover in the positive terrain implying buying interest.

The short-term outlook is bullish for the stock. The price targets are ₹141 and ₹144. Traders can buy the stock with a stop-loss at ₹132.5.

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

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Published on May 21, 2019
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