Flash News Investment - - TECHNICALS -

Cur­rent Ob­ser­va­tion: The stock, af­ter reg­is­ter­ing low of Rs 794.70 in the month of July 2017, en­tered into a strong cor­rec­tion phase and the fall was ar­rested at the level of Rs 665, which is near to its 200-day SMA. There­after, the stock wit­nessed a pull­back rally up to the level of Rs 776 and then went into cor­rec­tion mode from these lev­els and made a low of Rs 665, which led to the for­ma­tion of dou­ble bot­tom pat­tern.

At present, the stock has wit­nessed break­out of 4-month rec­tan­gle pat­tern along with ro­bust vol­umes. The stock has been trad­ing above its short term mov­ing av­er­age, i.e. 21-day SMA.

Among the os­cil­la­tors, the weekly 14-pe­riod RSI has en­tered into bullish zone and is on a ris­ing tra­jec­tory. The level of Rs 750 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 830-850.

Con­clu­sion: Con­sid­er­ing the break­out of rec­tan­gle pat­tern and the stock trad­ing above its 21-day SMA, we rec­om­mend buy­ing this stock for tar­get price of Rs 830-850 with stop loss at Rs 750 level.

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