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.