Bata India

We recommend a buy in the Bata India stock from a short-term trading horizon. It is evident from the charts of Bata India that the stock has been on an intermediate-term uptrend, forming higher peaks and troughs since February low of Rs 76. The stock’s intermediate-term uptrend commenced on a strong note with the formation of a double bottom (bullish reversal pattern) in the base. While trending up, the stock conclusively broke through a long-term significant resistance level at Rs 130 in mid-May. Following a short-term sideways consolidation, the stock resumed its intermediate-term uptrend. Moreover, the stock is trading way above its 21- and 50-day moving averages. The daily relative strength index is on the brink of entering the bullish zone and weekly RSI is already hovering in this zone. The daily moving average convergence and divergence is signalling a buy. We are bullish on the stock from a short-term trading view. We expect it to rally until it hits our price target of Rs 175. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 151.

via BL