We recommend a buy in the stock of Eros International Media from a short-term horizon. It is apparent from the charts of the stock that since mid-May it has been consolidating sideways in a broad range between Rs 160 and Rs 190. After testing the lower boundary which is also a significant long-term support, in late September and early October, the stock bounced up almost 6 per cent with good volume on October 8.
The stock appears to have reclaimed its bullish momentum by gaining 6 per cent accompanied by above average volume on Thursday also. It has breached its 21- and 50-day moving averages. The daily price rate of change indicator has entered the positive territory implying buying interest.
As the stock is reversing higher from the lower boundary accompanied with good volume, we are bullish on it from a short-term perspective. We expect its up move to prolong and reach our price target of Rs 176.5 or Rs 180 in the upcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 166.3 levels