Investors with a short-term perspective can buy the stock of Fortis Healthcare at current levels. After a short-term downtrend from August to October 2018, the stock found support at ₹127. Subsequently, the stock changed direction, triggered by positive divergence in the daily moving average convergence divergence indicator. On Wednesday, the stock gained 4.8 per cent, accompanied with above-average volume, breaching its 21-day moving average and a key resistance at ₹138. Experiencing buying interest, the stock has surged 8.7 per cent this week.

 

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The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI is hovering in the neutral region. The daily price rate of change indicator has entered the positive territory.

The short-term outlook is turning bullish for the stock. With the bullish momentum, the stock has potential to extend the upmove and reach the price targets of ₹146 and ₹149 in the ensuing trading sessions. Traders can buy the stock with stop-loss at ₹137.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

 

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