STOCK STRAT­EGY

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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.

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