Eros International Media - Buy

Eros International Media has been giving consistent returns to the investors and the following table shows thatit has given a return of around 38% in the last 6 months. The scrip continues to attract buying interest. Buy on declines for a 25-30% return in the next few quarters

Particulars	Week	1M	3M	6M
Price	186.90	161.90	142.70	145.30
Net Change	13.30	38.30	57.50	54.90
%Change	7.12	23.66	40.29	37.78

Investors with short-term perspective can consider buying the stock of Eros International Media. Since its listing in October 2010, the stock has been on an intermediate-term downtrend. However, after registering a life-time low at Rs 124 in late March, the stock changed its direction. This reversal was backed by a positive divergence in the daily as well as weekly relative strength index. The stock has been on a gradual uptrend since its March low. Last week, the stock took support around Rs 186 and bounced upwards.

Last week, the stock advanced 4.6 per cent breaching its 21- and 50-day moving averages emphatically. We notice that there has been an increase in volumes over the past five trading sessions. The daily RSI is hovering around 58 and is on the brink of entering in to the bullish zone. The weekly RSI is inching higher in the neutral region towards the bullish zone. Daily moving average convergence divergence indicator has signalled a buy and has started to move higher in line with the stock price.

We are bullish on the stock from a short-term perspective. We anticipate it to rally until it reaches our price target of Rs 253 or Rs 257 in the next 2-3 months. Traders can consider buying the stock with stop-loss at Rs 180

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