ETC Networks

We recommend a buy in the stock of ETC Networks from a short-term perspective. It is evident from the charts of the stock that it has been on a steady intermediate-term uptrend shaping rising peaks and troughs, from its March 2009 low of Rs 50. The stock's medium as well as short-term trend is also up. After consolidating sideways between Rs 240 and Rs 270 since late April 2010, the stock decisively broke out of this range by gaining 3.7 per cent with above-average volume on July 19. The stock is trading well above its 21- and 50-day moving averages. The daily relative strength index has entered in to the bullish zone and weekly RSI is already featuring in this zone. Both daily and weekly moving average convergence divergence indicators are hovering in the positive territory signalling upward momentum. Considering that the stock's medium-term uptrend line is in tact, we are bullish on the stock. We anticipate the stock to rally until it hits our price target of Rs 296 or Rs 300 in the approaching trading sessions. Short-term traders can buy the stock while maintaining stop-loss at Rs 277.

via BL