Technical Analysis

Equitas Holdings (₹168.5)

Yoganand D BL Research Bureau | Updated on January 09, 2018

Investors with a short-term perspective can buy the stock of Equitas Holdings at current levels. The stock gained bullish momentum and surged 5.6 per cent with above average volume breaching the intermediate-term down trend-line on Wednesday. Moreover, the stock has emphatically breached its moving average compression (21-, 50- and 200-DMAs) at ₹160, which is bullish from a short-term perspective.

The stock has been in a medium-term sideways consolidation phase in the band between ₹150 and ₹170 since May this year. The lower boundary at ₹150 consistently provided base for the stock and limited the downside. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is moving higher in the neutral region. Both the daily and weekly price rate of change indicator are featuring in the positive territory implying buying interest.

The short-term outlook is bullish for the stock. It has potential to breach the immediate resistance at ₹170 and extend its up move to reach the price targets of ₹175.5 and ₹179 in the short term. Traders can buy the stock with a stop-loss at ₹164.5.

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

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Published on August 30, 2017
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