✓ Current Observation: The stock, after registering a high of Rs 223.90 in the first half of May 2017, entered into a correction phase and the stock marked a series of lower tops and lower bottoms on the higher time frame. The correction halted around the level of Rs 89 and the stock entered into a pullback rally and went on to touch the level of Rs 122.75. However, it failed to sustain at the higher levels and dropped back to the level of Rs 94, thus marking a double bottom-like pattern on the higher time frame.
✓ The stock has also witnessed breakout of multi-touch point downward sloping trendline connecting highs of May 2017, November 2017, January 2018 and September 2018 along with decent volumes. Thereafter, the stock has witnessed follow-up buying, which indicates strength in the breakout.
✓ On the daily time frame, the stock is trading above its crucial moving averages, i.e. 100-day SMA and 200-day SMA.
✓ In the current scenario, the RSI on the weekly time frame is inching higher, which is positive for the stock.
✓ The stock has strong support around the level of Rs 114 and the same can be maintained as a stop loss level.
✓ On the upside, the stock has the potential to test the level of Rs 137, followed by Rs 144.
✓ Conclusion: Considering that the stock has witnessed breakout of multi-touch point downward sloping trendline in the higher time frame and the stock is trading above its crucial moving averages on the daily time frame, we would recommend buying this stock for a short-medium term period with a stop loss of Rs 114 on a closing basis and with an upside target of Rs 137, followed by Rs 144.