Rolta India

We recommend a buy in Rolta India from a short-term perspective. It is apparent from the charts of the stock that it has been on an intermediate-term uptrend, forming higher peaks and troughs since its March-low of Rs 40.70. However, the stock met with a significant long-term resistance around Rs 200 in early October and witnessed a corrective decline until it reached the support level at Rs 150, from where it bounced higher last week. On November 12, the stock gained 2 per cent accompanied with good volume and it is currently testing its 21- and 50-day moving averages. The daily and weekly relative strength indices are heading towards the bullish part of the neutral region. Considering that the stock’s intermediate-term up trendline is intact, we believe that it has the potential to surpass the moving averages and rally further until it hits our price target of Rs 196 in the approaching trading sessions. Traders with a short-term perception can buy the stock, while maintaining stop-loss at Rs 169.

via BL