Short-term traders can look to buy the stock on dips for a possible target of Rs 285 in the next 3-4 weeks, suggest experts.
Indus Towers is India’s largest mobile tower installation company. In India, 3 out of every 5 calls made are through an Indus site, the company website showed.
The telecom stock rose from Rs 184 as on 28th November 2023 to Rs 244 recorded on 28th February 2024 which translates into an upside of over 32% in just 3 months.
The momentum helped the stock to break out from a falling trendline resistance on the weekly charts. The neckline was placed above 230 levels.
The steep rise in price helped the stock to hit a fresh 52-week high of Rs 252 on 26th February 2024. However, it failed to hold on to the momentum.The crucial resistance is still placed around 250; hence, a close above the same could propel the stock towards 280 levels in the short term, suggest experts.In terms of price action, the stock is trading well above most of the crucial short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily charts which is a positive sign for the bulls.
The daily Relative Strength Index (RSI) is at 65.1. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed. The daily MACD is above its center and signal Line, this is a bullish indicator.
“Indus tower has given a Falling trend line breakout on the weekly chart with good volume & trading above 50 and 200 Daily moving averages. Indus Tower Future saw a long build-up with an OI of 1.5%, along with the rollover of 35%,” Shilpa Rout, Derivatives Lead Analyst, Prabhudas Lilladher, said.
“The data hints on a nearby resistance at 250/255 zones and moving past those levels, will see short covering & stock can rally up to 285 levels in coming days,” she added.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)