Television Eighteen India

We recommend a buy in Television Eighteen India (TV18) from a short-term trading perspective. It is clearly visible from the charts of TV18 that after encountering significant resistance around Rs 250 in august, it resumed its long-term downtrend and declined sharply. However, the stock found support at Rs 53, recording a 52-week low in November and reversed direction. A prolonged positive divergence in the daily relative strength index (RSI) supported this trend reversal. The stock has been on a short-term up trend from its 52-week low. While trending up, it breached its 21-day moving average recently. On December 15, the stock jumped by 8 per cent accompanied with heavy volume. The daily RSI is on the verge of entering the bullish zone and weekly RSI is recovering from the oversold territory. We are bullish on the stock from a short-term horizon. We expect the stock’s current rally to prolong until it hits our price target of Rs 92. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 77.