Buy Deccan Chronicle; target of Rs. 183: India Infoline

Bangalore: India Infoline Research is bullish on Deccan Chronicle Holdings and has recommended a buy rating on the stock with a target of Rs. 183. According to the brokerage, last Friday, the stock gave a breakout after consolidating between the levels of Rs. 172-157 for the last two weeks. The stock has a strong support around its 100 daily moving average. Friday's close is above its key resistance levels of Rs. 172 with higher than average volumes.

Deccan Chronicle Holdings is an India-based company that is principally engaged in printing and publishing newspaper and periodicals. The company's subsidiaries include Asian Age Holdings, Sieger Solutions, Odyssey India and Deccan Chargers Sporting Ventures. India Infoline says, In fact, the breakout has occurred after a two week consolidation, representing a high level bullish congestion, suggesting a potential upside to the levels of Rs. 183 and above.

According to India Infoline, the daily Relative Strength Index (RSI) of the stock is already in strong buy mode. The stock has closed above all its key daily moving averages. With the recommended target price of Rs. 183, if the stock is bought at Monday's closing price of Rs. 172.05, the percentage of gain would be 6.36 percent.