Prime Focus

We recommend a buy in Prime Focus from a short-term horizon. It is apparent from the charts of the stock that from the March low of Rs 51.8, the stock has been on an intermediate-term uptrend. Moreover, it has been on a medium-term uptrend since July low of Rs 130. Recently, the stock took support around Rs 180 from the intermediate-term uptrend-line and continued to trend up. On September 22, the counter jumped 5 per cent accompanied with above average volume. It is trading well above its 21- and 50-day moving averages. The daily relative strength index (RSI) has entered the bullish zone and weekly RSI is heading towards this zone. The daily moving average convergence and divergence (MACD) indicator has signalled a buy and weekly MACD is featuring in the positive territory. Our short-term forecast on the stock is bullish. We expect the stock to move up until it hits our price target of Rs 223. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 192.

via BL