Fortis Healthcare

We recommend a buy in Fortis Healthcare stock from a short-term perspective. It is apparent from the charts of the stock that it has bee on a long-term uptrend from its October 2008 low of Rs 45, forming higher peaks and troughs. Moreover, the stock's medium as well as shortterm trend also is up. On December 4, the stock decisively broke through a significant medium-term resistance at Rs 115 by jumping 6 per cent. There is an increase in volumes over the past two trading sessions. With this surge the stock reinforced its long-term uptrend and is trading way above its 21- and 50-day moving averages.

The daily relative strength index (RSI) is featuring in the bullish zone and weekly RSI has entered this zone from the neutral region. The daily moving average convergence and divergence indicator has entered in to the positive territory. Considering that the stock's long-term up trendline is in tact we are bullish from a short-term perspective.

We expect it to move up further until it hits our price target of Rs 133 in the forthcoming trading sessions. Trader with a short-term horizon can buy the stock, while maintaining a stop-loss at Rs 114.

via BL