Prime Focus

We recommend a buy in the stock of Prime Focus from a short-term perspective. It is evident from the charts of the stock that its short-term downtrend which started from its April 2010 peak of Rs 365, found support around Rs 260 in late May. This downtrend retraced exactly 61 per cent fibonacci retracement of its prior uptrend (from Rs 191 to Rs 360). Subsequently, the stock resumed it medium-term uptrend that is in place since the February 2010 low of Rs 191. On Tuesday, the stock advanced 5 per cent conclusively breaching through its key resistance and 50-day moving average poised around Rs 285. The volume was above average. Both daily and weekly relative strength indices have entered into the bullish zone. Moreover, the daily moving average convergence divergence indicator is on the brink of entering this positive territory, whereas the weekly indicator is featuring in the positive territory. Our short-term forecast on the stock is bullish. We anticipate the stock to rally further until it hits our price targets of Rs 314 or Rs 320. Short-term traders can buy the stock with stop-loss at Rs 288.

via BL