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

ETC Networks

We recommend a buy in the stock of ETC Networks from a short-term perspective. It is apparent from the charts that the stock found support at Rs 50, a key long-term support level in March, and reversed direction. Since then it has been on an intermediate-term uptrend. Following a short-term correction, the stock resumed its intermediate-term uptrend from the middle of July. Later on, it breached its 50-day moving average and is trading well above it. The stock broke through a key medium-term resistance at Rs 150 by jumping 10 per cent with above average-volume on September 29. Both daily and weekly relative strength indices (RSI) are featuring in the bullish territory. The daily moving average convergence and divergence indicator has signalled a buy and is hovering in the positive territory. Considering that the intermediate-term up trendline of the stock is intact, we are bullish from a short-term horizon. We expect the stock to rally until it hits our price target of Rs 174. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 150.

via BL