Wednesday, July 27, 2011

Prime Focus - Buy

We recommend a buy in the stock of Prime Focus from a short-term perspective. It is evident from the charts of the stock that after taking support from its long-term base zone between Rs 40 and Rs 42 in March 2011, the stock bounced up. The stock appears to have resumed its long-term uptrend that has been in place since early 2009.

Following a month of sideways movement in a narrow range between Rs 53 and Rs 59, the stock breached through this range on Monday by surging 7 per cent. The stock has penetrated its 21-, 50 and 200-day moving averages . We notice that there has been an increase in volumes over the past three trading sessions. The 14-day relative strength index is on the brink of entering into the bullish zone and weekly RSI is inching higher towards the bullish zone. Daily moving average convergence divergence indicator has signalled a buy.

Weekly MACD is featuring in the positive territory. Daily and weekly price rate of change indicators are featuring in the positive territory indicating buying interest. We are bullish on the stock from a short-term perspective. We anticipate it to move higher and reach our price target of Rs 62 or Rs 63.5. Traders with short-term horizon can buy the stock with stop-loss at Rs 58 levels

For technical analysts the following may be a good indicator of the trend

SMA

DaysBSENSE
3062.1262.10
5060.6260.61
15056.7856.80
20059.1059.10


The scrip gave good returns on a 1 year horizon and will continue to out perform in the near future.


1 week
2 week1 month3 month6 month9 month1 year
Price70.1063.8050.9062.6054.9068.9235.09
Gain / Loss9.77%20.61%51.18%22.92%40.16%11.65%119.29%

The scrip can be brought at support levels Rs.50 levels on extreme weakness and investors can sell at resistance levels around Rs.80 giving a decent upside of more than 60%

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor