We recommend a buy in the mass media scrip PVR from a short-term horizon. It is apparent from the charts of the stock that since its March 2011 low of Rs 94, it has been on a long-term uptrend. Following a corrective decline from early December 2012 peak of Rs 341, the stock found support at Rs 250 in late January and early February this year. The stock resumed its long-term uptrend taking twin support at Rs 250. Both medium- and short-term trends are up for the stock.
Reinforcing the uptrend, the stock advanced 2 per cent accompanied by above average volumes recently. It is trading well above its 21- and 50-day moving averages. The daily as well as weekly relative strength indices are featuring in the bullish zone. Moreover, both daily and weekly price rate of change indicators are hovering in the positive terrain implying buying interest.
Our short-term outlook on the stock is bullish. We expect its uptrend to continue and reach our price target of Rs 400 or Rs 421 in next 2 months. Traders with a short-term horizon can consider buying the stock with stop-loss at Rs 335 level.
Smart Investor Equity Research Division
Ravina Consulting No.24 Pattamal Plaza 3rd Cross, Kammanahallli BANGALORE 560084