ENIL

We recommend a buy in Entertainment Network India (ENIL) from a short-term trading perspective. It is apparent from the charts of ENIL that it has been on a medium-term uptrend since its lifetime low of Rs 93, recorded in late November 2008. The stock has been forming higher peaks and higher troughs from this low. On December 30, the stock jumped by 18 per cent with an upward gap, penetrating its long-term down trendline (which was in place since December 2007 peak of Rs 700). The stock gained 9 per cent, accompanied by above average volume, resuming its medium-term uptrend on January 19. It is trading well above the 21- and 50-day moving averages. The weekly relative strength index has re-entered the neutral region from the bearish zone. Considering that the medium-term uptrend line continues to be intact, we are bullish on the stock from a short-term horizon. We anticipate the stock to move up further until it hits our price target of Rs 191. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 163.

via BL