The stock of Eros International Media has been in the limelight over the past one week. Extending the bullish momentum, the stock surged 8.8 per cent accompanied by above average volume on Monday.

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

Although the long- and medium-term trends are down for the stock, the short-term trend is up. After recording a new low at ₹61.65 in early October, the stock changed direction. The stock has been on a short-term uptrend over the last one month. Key support in the band between ₹70 and ₹72 cushioned the stock in late October. There has been an increase in daily volume over the past three trading sessions.

On Monday, the stock surpassed its 50-day moving average and now hovers well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Moreover, the daily price rate of change indicator features in the positive territory implying buying interest.

The short-term outlook is bullish for the stock. It can extend the uptrend and reach the price targets of ₹101.5 and ₹103.5 in the coming days. Buy the stock with a stop-loss at ₹95.

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