BSE Code ...... 531162 Target 1 .... ₹1300 | Target 2 .... ₹1345 | Stoploss ... ₹1110(CLS)
Current Observation: The stock, after registering low of Rs 428 in the month of May 2014, entered into a strong bull phase and marked high of Rs
1365 in the month of August, 2015. Since then the stock started moving in a broad band and formed ‘higher lows, lower highs’ pattern, thus resulting in formation of ‘Symmetrical Triangle
At present, the stock has witnessed breakout of symmetrical triangle pattern, along with decent volumes. The stock has been trading above its short term moving average, i.e. 21-day EMA.
Among the oscillators, the weekly 14-period RSI has entered into bullish zone and is on a rising trajectory. The level of Rs 1110 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 1300-1345.
Conclusion: Considering the breakout of symmetrical triangle pattern and the stock trading above its 21-day EMA, we recommend buying this stock for target price of Rs 1300-1345 with stop loss at Rs 1110 level.