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India Infoline puts BUY on Idea Cellular

India Infoline puts BUY on Idea Cellular
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First Published: Mon, May 18 2009. 09 56 AM IST
Updated: Mon, May 18 2009. 09 56 AM IST
On the daily chart, the stock has been trading in a rising channel from a low of Rs42 in early March 2009, thus indicating strong build up in the stock.
In fact, a detailed study of the daily chart suggests that the stock has given a breakout past its 200-DMA with heavy volumes placed around the levels of Rs64.
The Daily RSI is exhibiting strong positive divergences, which indicates that the worst is over and that the trend should reverse from the current levels.
Volumes have shown a smart increase in the past few sessions, which suggests accumulation at lower levels.
A bullish candlestick on Friday further validates our argument of a short-term bounce in the stock. We recommend a BUY for a short-term target of Rs77 with a stop loss of Rs58.
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First Published: Mon, May 18 2009. 09 56 AM IST
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