We recommend a buy in Oracle Financial Services from a short-term trading perspective. It is evident from the charts of the stock that from the resistance level of Rs 1,500, it declined and found support at around Rs 405 in late October 2008. This is a 52-week low for the stock. We notice the formation of a double bottom pattern, a bottom reversal pattern spanning between October and January 2009.
In mid-February, the stock broke out of the resistance level at Rs 620, accompanied with good volume. Moreover, the stock made a pull back to Rs 620, which now turned into support. However, the stock bounced up taking support from this level recently.
On March 19, the stock gained 6 per cent accompanied with high volume, reinforcing the bullish momentum. The daily relative strength index is on the brink of entering into the bullish zone and the weekly RSI is rising towards this zone. We are bullish on the stock from a short-term trading perspective. We expect the stock to move up until it hits our price target of Rs 765 in the forthcoming sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 657.
Source: HBL
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