Dish TV India :BUY Recommendation

The Hindu Business Line has recommended a buy in Dish TV India at current market price. It is clearly evident from the charts of Dish TV that it was on a long-term downtrend from its life high of Rs 142 (touched in June 2007). However, the stock found support in November at the low of Rs 50 and reversed direction. Since then, the stock has been on a medium-term uptrend, which is still in place. Moreover, we note that the stock’s price action between August and November has formed an inverse head and shoulders pattern with neckline at Rs 90. Following a break out of this inverse head and shoulders pattern in early December, the stock has witnessed a pull back to the neckline (which generally occurs after the breakout of these patterns). Currently, the stock is hovering just above a significant support level of Rs 90 and the next support is pegged at Rs 71. The daily momentum indicator is featuring in the bullish zone. Short-term investors can buy the stock while keeping their stop-loss at Rs 85. We expect the stock to bounce up and reach our price target of Rs 105 in the short-term.