I had bought shares of Kajaria Ceramics at Rs 470 considering it to be a breakout, but the stock reversed. What to do now?
- S. Mazumdar
HOLD KAJARIA CERAMICS WITH A STOP LOSS OF RS 405
Kajaria Ceramics is currently trading at Rs 484.75. Its 52-week high/low stand at Rs 768/405 made on September 21, 2017 and August 16, 2018 respectively. The stock failed to break out of the symmetric triangle pattern initiated at its all-time high of Rs 787.55 level on May 10, 2017. Rather, the stock gave a breakdown at Rs 680-690 level on January 30, 2018, along with 200-day EMA support and, thereafter, traded with lower tops and lower bottoms till its 52-week low. It hit a Doji and gave a big bullish candle on August 21, with volume spurt and the 14-period RSI positive crossover bouncing back from oversold zone. We suggest you to Hold for now and exit at Rs 405