The Fortis Healthcare stock has been witnessing buying interest over the past three weeks and has surged 12 per cent in this period. It has the potential to extend the ongoing rally. Investors with a medium-term perspective can buy the stock at the current levels. Following a medium-term downtrend, the stock found support at 52-week low at ₹111, recorded in early August this year.
![0610Fortiscolcol 0610Fortiscolcol](/theme/images/bl-online/1x1_spacer.png)
Subsequently, the stock changed direction, triggered by positive divergence in the weekly price rate of change indicator. Since then, the stock has been on a medium-term uptrend. While trending up, the stock breached a key resistance at ₹127 as well as the 21-and 50-day moving averages in early September. Later, the stock breached its 200-day moving average and another resistance at ₹133. The stock trades well above these moving averages. There has been an increase in daily volume over the past two weeks. On Friday, the stock gained 3.6 per cent, reinforcing the uptrend. The daily relative strength index features in the bullish zone and the weekly RSI has entered the bullish zone from the neutral region. Besides, the daily as well as weekly price rate of change indicators hover in the positive territory, implying buying interest. Overall, the outlook is bullish for Fortis Healthcare. Targets are ₹150 and ₹160. Investors with a medium-term view can buy with a stop-loss at ₹129.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.