Technical Analysis

Fortis Healthcare (₹164.4): Buy

Yoganand D BL Research Bureau | Updated on February 10, 2020 Published on February 11, 2020

A Fortis hospital building is pictured in New Delhi. File Photo   -  Reuters

Investors with a short-term perspective can buy the stock of Fortis Healthcare at current levels. The stock had gained 5 per cent accompanied by above average volume on Friday, breaking above a key resistance at ₹158. Also, it had surged 8 per cent last week, strengthening the short-term uptrend that has been in place from the December 2019 low of ₹129.

While trending up, the stock breached its 50- and 200-DMAs in early January and currently trades well above them. Moreover, the recent rally has underpinned the intermediate-term uptrend that has been in place since August 2019 low of ₹111.

The daily as well as the weekly relative strength indices are featuring in the bullish zone backing the uptrend. Besides, the daily and the weekly price rate of change indicators are hovering the positive terrain indicating buying interest.

With the recent breakout of a key resistance at ₹158 and the short-term uptrend is intact, outlook for the stock is bullish. It can continue to trend upwards and reach the price targets of ₹171.5 and ₹175 in the upcoming trading sessions. Traders with a short-term perspective can buy with a deep stop-loss at ₹160.

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

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Published on February 11, 2020
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