Current Observation: The stock, after registering a high of Rs 265.20 on July 27, 2017, entered into correction phase. Thereafter, the stock made a low of Rs 233.70.
At present, the stock has witnessed breakout of cup and handle-like pattern, along with higher volumes.
The stock has been trading above its important moving average, i.e. 50-day EMA.
The daily 14-day RSI is trading in bullish zone and trending up.
The level of Rs 253 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 the levels of Rs 280-286.
Conclusion: Considering the breakout of cup and handle-like pattern and the stock trading above its 50-day EMA, we ecommend buying this stock for the target price of Rs 280-286 with stop loss at Rs 253 level.