Inox Leisure

We recommend a buy in the stock of Inox Leisure from a short-term perspective. It is evident from the charts of the stock that following a medium-term correction between early June and mid July from Rs 71 to Rs 37, it found key support around Rs 40. Later, it resumed its intermediate-term uptrend that has been in place from March low of Rs 18.9. Since July, it has been on a medium-term uptrend too. Recently, the stock surpassed its 21-day moving average and is trading well above 21 and 50-day moving averages. On September 18, it breached its near-term resistance at Rs 55 by gaining 5 per cent with good volume. The daily relative strength index (RSI) has entered in to the bullish zone and weekly RSI is on the brink of entering this zone. The daily moving average convergence and divergence indicator has signalled a buy and is hovering in the positive region. We are bullish on the stock from a short-term horizon. We anticipate it to rally until it hits our price target of Rs 63. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 54.

via BL