Idea Cellular

Investors with short-term trading perspective can buy Idea Cellular. This stock is reversing after recording a 52-week low of Rs 34 in late October. Since November, the stock has been consolidating sideways in a broad range between Rs 41 and Rs 55. It recently found support at the lower boundary of the sideways range at Rs 41 and began to move up.

On January 27, the stock gained 3.7, reinforcing bullish momentum. We notice that there is an increase in volume over the past three trading sessions. The daily relative strength index has entered the neutral region from the bearish zone.

Our short-term forecast is bullish for the stock. We expect the stock’s up move to continue until it hits our price target of Rs 49. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 42.5.