STOCK STRAT­EGY

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BSE Code ...... 500295 Tar­get 1 .... ₹260 | Tar­get 2 .... ₹267 | Sto­ploss ... 226 (CLS)

Cur­rent Ob­ser­va­tion: The stock, af­ter reg­is­ter­ing high of Rs 355.70 as on Jan­uary 29, 2018, marked a se­quence of lower tops and lower bot­toms and marked a low of around Rs 200.65 in the month of July 2018. Re­cently, the stock wit­nessed break­out of re­sis­tance trend­line on the daily time frame chart along with ro­bust vol­umes. Ad­di­tion­ally, the stock formed a size­able bullish can­dle on the break­out day, which adds strength to the break­out. The stock is trad­ing above its im­por­tant short-term mov­ing av­er­age, i.e. 20-day SMA, which is pos­i­tive for the stock. The daily 14-pe­riod RSI is trad­ing in bullish zone. The stock has strong sup­port around the level of Rs 226 and the same can be main­tained as a stop loss level. On the up­side, the stock has po­ten­tial to test the lev­els of Rs 260, fol­lowed by Rs 267. Con­clu­sion: We ex­pect the stock to con­tinue its pos­i­tive mo­men­tum and test the level of Rs 260 as it is the 38.2 per cent re­trace­ment level of the en­tire de­cline (Rs 355.70- 200.65) fol­lowed by Rs 267 in the short to medium term. Read­ers can main­tain a stop loss of Rs 226 for this rec­om­men­da­tion.

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