Short-term traders can look to buy the stock for a possible target in the range of 300-360 in the next 2-3 months, they say.
The stock rose from Rs 212 recorded on 31 July 2023 to a record high of Rs 247 registered (intraday) on 31 August 2023 which translates into an upside of 16% in a month. The stock recorded an intraday high of Rs 246.95 on 7 January 2008.
The stock moved in a narrow range of 20 points since May 2023 where levels around 220 acted as a stiff resistance while on the downside support was seen above 200 levels on the daily charts.
The recently reclaimed 50-DMA on 17 August 2023. It is already trading above the long-term moving average i.e. 200-DMA on the daily charts.
On the monthly charts, the stock breached a 15-year rectangle trading range on the upside which gives further confidence to the bulls. The last time when the stock was trading above 246 levels was back in January 2008.
After hitting a high of Rs 246.95 on 7 January 2008, the stock failed to hold on to the momentum. It found support above 44 levels in 2013 before inching higher.“In high volume, EIH stock has risen to a record high in August 2023. The stock experienced an upward breakout with above-average volumes after nearly 15 years in a rectangle range of 165 points on a monthly basis. The stock is trading higher than its four-year average, or 50 SMA,” Suraj Bathija, Founder & CSO at AlgoBulls, said.
ETMarkets.com“The significant volumes in August 2020 allowed the stock to gain support at its previous level. The stock is completely confined to an upward channel on the weekly charts and is demonstrating its strength by retracing and moving higher,” he said.
ETMarkets.com“Strong trends, in our opinion, retrace periodically before picking up steam once more. The company’s annual revenue growth increased by 100.82% over its three-year CAGR of 7.69%,” highlights Bathija.
In comparison to the Nifty Midcap 100’s three-year return of 126.97% (as of the most recent trading day), the stock had a three-year return of 162.31%. Daily, weekly, and monthly RSI are all higher than 60.
“The breakout range of 215-225 for the aforementioned stock, which can be retraced there, will be a great place to buy the stock. The stock is probably going to hit targets 1 and 2 of 299 and 365 in the coming quarter from the CMP,” recommended Bathija.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)