We recommend a buy in the stock of Hathway Cable & Datacom from a short-term perspective. It is seen from the charts of the stock that following an intermediate-term downtrend from September 2010 peak of Rs 237, it found support in the range between Rs 92 and Rs 96 in March this year. However, the stock changed its direction triggered by positive divergence in daily moving average convergence divergence and started to trend higher later on.
After more than a month's narrow range bound movement between Rs 106 and Rs 117, the stock broke out this range by jumping seven per cent with above average volumes on Wednesday. Moreover, this up move has breached its 21- and 50-day moving averages emphatically. The daily relative strength index has entered into the bullish zone from the neutral region and weekly RSI is rising higher in the neutral region. Daily MACD has signalled a buy and is on the verge of entering into the positive territory.
The stock has given the following returns in the last 1 year and is likely to be slow mover going forward.
Considering the stock's recent breakthrough, we are bullish on it from a short-term perspective. We expect the stock's upward momentum to continue and reach our price target of Rs 124.5 or Rs 128 in the upcoming trading sessions. Traders with short-term perspective can buy the stock around 70 levels with stop-loss at Rs 60/-
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