Current Observation: The stock, after registering a high of Rs 273.60 in the month of March, 2016, entered into a downtrend.
At present, the stock has witnessed breakout of 'cup and handle'-like pattern on the weekly time frame along with decent volumes.
The stock has been trading above its short term moving average, i.e. 21-day EMA.
The daily 14-day RSI is trending up and trading in the bullish zone.
The level of Rs 265 is likely to act as a strong support and this could be maintained as a stop loss for long positions.
On the upside, the stock is likely to touch levels of Rs 290-300.
Conclusion: Considering the breakout of 'cup and handle-like pattern on the weekly time frame and the stock trading above its 21-day EMA, we recommend buying this stock for target price of Rs 290-300, with stop loss at Rs 265 level.