Investors with a short-term perspective can consider buying the stock of Eros International Media at current levels. Following a medium-term downtrend, the stock found support at around ₹160 in late November and December, 2016. Subsequently, the stock changed direction and has been on a short-term uptrend since then. While trending up, the stock initially breached a key resistance at ₹180 last week and encountered the next resistance at ₹200. After testing this resistance the stock has emphatically breached it by gaining 3.7 per cent on Monday.
The stock has breached its 200-DMA conclusively and is trading well above this level as well as the 50-DMA. The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering this zone. Outlook is bullish for Eros International Media. Buy the stock with stop-loss at ₹203. Short-term targets are ₹216 and ₹220.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)