UTV Software

We recommend a buy in UTV Software Communications from a short-term trading perspective. It is apparent from the charts of UTV Software that after a medium-term decline from the resistance level of Rs 479, the stock appears to have resumed its intermediate-term uptrend that has been in place since its March low of Rs 182. Recently, the stock found support at significant support band of Rs 300-310 and started moving up. On July 20, the stock surged almost 8 per cent with above-average volume. This rally helped the stock penetrate its 21- and 50-day moving averages conclusively. Daily and weekly relative strength indices are heading towards the bullish zone. Besides, the daily moving average convergence and divergence indicator is signalling a buy. Our short-term outlook is bullish on the stock. We anticipate the stock to continue its up-move until it hits our price target of Rs 405. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 348.

via BL