Short Term Prospective Buy Sobha for a Target of 300

Investors with a short-term perspective can consider buying the shares of Sobha.

The stock surged 4.9 per cent on Monday despite the benchmark indices closing about 1 per cent lower.

The downtrend that had begun from the high of Rs.368.7 in early August halted last week. The stock has formed a base by consolidating sideways between Rs.244 and Rs.257. The strong surge and a decisive close on Monday with a break above Rs.257 have eased the downside pressure on the stock. Intermediate dips to Rs.260 and Rs.257 are likely to attract fresh buying interest.

The 21-day moving average at Rs.267.5 is the immediate resistance.

A strong break above this hurdle looks likely now.

Such a break can take the stock higher to Rs.270 and Rs.275. Traders with a short-term perspective can go long in the stock.

Stop-loss can be kept at Rs.258 for a target of Rs.300.