Incorporated in 1996, Fortis Healthcare (NS:) is an integrated healthcare service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics, and day care specialty facilities. Currently, the company operates its healthcare delivery services in India, Nepal, Dubai, and Sri Lanka with 36 healthcare facilities with approximately 4,000 operational beds. The stock is trading at a 6.87% discount to its 52-week high level. The 52-week high and 52-week low range is Rs 304 – Rs 136.
One week time frame: (Chart 1)
On a weekly time frame, from the chart below, we can see that Fortis Healthcare stock has broken out of a Bullish Flag pattern. You should also note that the share has taken support on the 50-day EMA line and has reversed. We expect to further see an upward move supported by an increase in volumes. Relative Strength Index (or RSI) is above 60 which indicates positive momentum on the scrip. Long-term investors can enter at current levels. However, they should maintain the stop loss at Rs 239 (previous swing low) on a weekly closing basis. Our view will negate this level.
One day time frame: (Chart 2)
On a daily time frame, Fortis Healthcare scrip broke out of a Rounding Bottom formation when the stock crossed an important resistance level of Rs 282 on November 16, 2021. Since then, the stock made a high of Rs 299.25 and is now testing the support level of Rs 282. We expect the share to take support at this level and move higher aided by higher volumes. RSI is above 60 and the Moving Average Convergence Divergence (or MACD) line is above the signal line. It denotes positive momentum on the stock. Positional traders should enter once the reversal from Rs 282 level is established. They should maintain the stop loss at Rs 252 on a daily closing basis.
We anticipate the share to maintain positive bias and move higher. Short-term traders should enter only when the scrip crosses and stays above Rs 286 levels. They should keep a strict stop loss at Rs 273 on a daily closing basis.