Religare Enterprises (Rs 305.5):: Business Line

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Religare Enterprises (Rs 305.5)

Religare Enterprises zoomed more than 19 per cent in the previous week, after forming a strong base at around Rs 260. For more than three weeks, the stock moved sideways forming a significant base at around Rs 260, though it did register an all-time low at Rs 250 on March 21. The stock subsequently changed direction triggered by positive divergence in daily moving average convergence divergence indicator and weekly relative strength index. The stock breached its 21 and 50-day moving averages in the recent rally and is hovering above them. The stock advanced 5 per cent on Thursday and is currently testing key resistance at Rs 300.

A strong positive opening in the week ahead will take the stock higher to Rs 330 and then to Rs 350. Key resistances above Rs 350 are at Rs 370 and Rs 400. However, failure to move above Rs 330 will confine the stock to moving sideways in a broad band between Rs 260 and Rs 330.

MT Educare (Rs 80.4)

After marking an all-time low at Rs 67 the stock bounded up, gaining 13 per cent in the week ago. We notice that there has been an increase in daily volumes in the past four trading sessions. The stock's daily relative strength index and price rate of change indicators have recovered from the oversold area.

Since peaking out from January high of Rs 142, the stock has been on a medium-term downtrend. While trending down, it conclusively breached a key support at Rs 100 in late February 2013 and continued to decline. Nevertheless, after marking the new low, the stock bounded up.

It is testing important resistance at Rs 85. A strong breakthrough of this resistance can take the stock higher to the Rs 95 and Rs 100 range in the medium-term. Inability to surpass the key resistance at Rs 85 can pull the stock down to Rs 75 or to Rs 67 in the same time frame. An emphatic rally above Rs 115 will alter the stock's medium-term downtrend and take it northwards to Rs 135 or to new highs in the long-term.