Buy Jet Airways; target of Rs. 535: India Infoline

Mumbai: India Infoline is bullish on Jet Airways and has recommended a buy rating on the stock with a target of Rs. 535. According to the brokerage, the stock consolidated from second week of March 2010 between the range of Rs. 499-453. Last Friday, the stock broke past the top-end of the consolidation phase and the move was supported by strong volumes.

Jet Airways is an India-based company engaged in air transportation that operates in two segments: domestic and international. The company operates flights to 18 international destinations. The company's subsidiaries include Jet Lite, Jetair, Jet Airways, Trans Continental e Services, Jet Enterprises, Jet Airways of India, India Jetairways and Jet Airways Europe Services.

India Infoline, moreover, the stock has closed above its 100-day DMA after struggling to close above the important moving average since last three weeks. The momentum oscillators like the daily RSI have given a positive divergence, supporting our argument of stock price heading north. With the recommended target price of Rs. 535, if the stock is bought at Monday's closing price of Rs. 531.20 the percentage of gain would be 0.71 percent.