We recommend a buy in TV 18 from a short-term perspective. We note that the stock has been on an intermediate-term downtrend form its January 2008 high of Rs 599 levels. However, the stock found support at around Rs 300 level in late April and again in mid May the stock found support just above this level.
The stock has formed a falling wedge pattern spanning over the past four months, which is a bullish pattern. Falling wedge pattern has occurred at the bottom of the downtrend indicating reversal in the current trend. The daily momentum indicator has found support at 40 levels recently and bounced up. The daily moving average convergence and divergence is displaying positive divergence, supporting our bullish view.