India Infoline puts ACCUMULATE on Sun TV

India Infoline puts ACCUMULATE on Sun TV

Sun TV has witnessed swift decline from a high of Rs390 in May 2008 to a low of Rs125 in December 2008, representing more than 65% correction in value terms.

It has been trading in a broad range between Rs175-125 levels since mid October 2008 till date.

A look at the daily charts suggests formation of a bullish inverted head and shoulder pattern with rising neckline. The neckline for this Inverted head and shoulder pattern is placed at Rs175-177 levels.

The stock has given a close above all its key near term and short term moving averages currently placed between Rs154-160 levels. The daily RSI has generated a fresh buy signal, indicating towards a strong possibility of a break-out past the neckline.

Following the break-out, the stock has the potential to head towards target of Rs225 levels.

Keeping in mind the above-mentioned technical evidences, traders should BUY the stock at current levels with stop loss of Rs154 levels for target of Rs180 and Rs190 levels.

Investors can accumulate the stock with a medium-term perspective for target of Rs190 and Rs210. A stop loss of Rs144 is recommended on all investment positions.