BSE Code ...... 540376 Target 1 .... ₹1460 | Target 2 .... ₹1500 | Stoploss ... 1250
Current Observation: The stock, after registering a high of Rs 1680 as on February 2, 2018, entered into a correction phase and marked a sequence of lower tops and lower bottoms. The stock has formed a sizeable bullish candle on the daily chart near about its 61.8 per cent retracement level of its entire upmove from February to August 2018. Additionally, the stock has formed a hammer-like pattern on the weekly time frame, though we have one trading session remaining in the weekly close. The 14-period RSI on the daily time frame is hinting a reversal from the oversold territory as it has crossed its 9-day average. On the weekly time frame, the RSI is trading above the 40-mark. The stock has strong support around the level of Rs 1250 and the same can be maintained as a stop loss level.
On the upside, the stock has the potential to test the levels of Rs 1460, followed by Rs 1500. Conclusion: Considering that the stock has taken support around its 61.8 per cent retracement level and formed a sizeable bullish candle, we recommended buying this stock for the short term with a stop loss of Rs 1250 on a closing basis and with target of Rs 1460, followed by Rs 1500.