Buy Info Edge (India), target Rs 1800: Ashish Chaturmohta

Ashish Chaturmohta

Info Edge (India) touched an all-time high of Rs 1,698 in the month of September and then corrected towards Rs 1,310. Since then, the stock has been consolidating between Rs 1,700 and Rs 1,300 for the last four months and formed a base for the next leg of the up move.

The lows were formed at 200-day moving average indicating value area for the stock. Though the stock is witnessing resistance on the upside, it has rallied sharply from the lower end of the range and declines have been on below-average volumes that indicates buying participation in the counter.

MACD line has given positive crossover with its average above equilibrium level of zero on weekly chart suggesting resumption of the uptrend. Thus, the stock can be bought at current levels and on dips towards Rs 1,620 with a stop loss below Rs 1,570 and a target of Rs 1,800.

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