Rolta India

We recommend a buy in the Rolta India from a short-term trading horizon. It is evident from the charts of Rolta that it has been on a medium-term uptrend since its 52-week low of Rs 40.7 recorded on March 12. While trending up, the stock conclusively penetrated the intermediate-term down trendline drawn from September 2008 high of Rs 360. On April 13, the stock jumped 43 per cent with heavy volume, penetrating it 50-day moving average. Subsequently, the stock managed to stay above this average and is currently trading well above this line. A positive divergence in the weekly relative strength index backs the stock’s trend reversal. The daily RSI is hovering in the bullish zone. The stock surged 11 per cent on May 21, reinforcing the bullish momentum. Besides, we observe that there is an increase in volume over the past three trading session. Considering that the medium-term up trendline is intact, we are bullish on the stock from a short-term perspective. We expect the stock to move up until it hits our price target of Rs 122 in the forthcoming trading session. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 104.

via BL