We recommend a buy in the stock of Hitachi Home and Life Solutions India. It is evident from the charts of the stock that following a short-term downtrend from its April peak of Rs 162, it took support at Rs 111 in early June. But the stock reversed direction, triggered by positive divergence in daily relative strength index and moving average convergence divergence indicator. The stock took support again at Rs 111 in late June and started moving higher.
Last week, it breached its short-term downtrendline. The stock advanced 6.5 per cent on Tuesday, emphatically breaking through its key resistance at Rs 122. We observe that there is an increase in daily volumes over past three trading sessions. The daily RSI has entered into the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region.
After signalling a buy, the daily MACD is trending higher in line with the stock price, implying upward momentum. We are bullish on the stock from a short-term perspective. We expect its up move to prolong and touch our price target of Rs 129.5 or Rs 133.5 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 122.