Equitas Holdings (₹146): Buy
The stock of Equitas Holdings gained 4 per cent with good volume on Thursday, breaching a key resistance at ₹142 which was limiting the upside over the past one month. This rally provides a good buying opportunity for investors with a short-term perspective.
After a medium-term downtrend, the stock found support in the band between ₹132 and ₹135 in late June and again in mid-July this year. Subsequently, the stock changed direction triggered by a positive divergence in the daily moving average convergence divergence and price rate of change indicators.
The stock has been trending up over the past two weeks, backed with good volume. Recent breach of 21-day moving average and the key resistance at ₹142 has strengthened the rally. The daily relative strength index has entered the bullish zone from the neutral region. Further, the daily price rate of change indicator hovers in the positive territory implying buying interest.
The short-term outlook is bullish. The stockcan continue to move up and hit the price targets of ₹152 and ₹155 in the coming week. Traders can buy the stock with a stop-loss at ₹143.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)