After the fall from 525 to 126, the stock made “Doji Pattern” at the bottom in the weekly chart and moved up. The share price went into a consolidation mode after moving up. The stock spent the last one year consolidating between the broad range of Rs 125 to Rs 227 levels. Last week it broke the range and closed above that range.
We saw Range breakout in the stock in weekly chart with heavy volumes, which is bullish signal for the stock. After the sharp move we saw correction in the stock. Yesterday it took support of the trendline and moved up.
Volumes increased sharply during the whole base formation which suggests accumulation in the stock by strong hands.
On the oscillator front, RSI is moving well above its average and making higher lows in weekly chart, which indicates price to move towards north.
MACD is also moving in upward direction in positive zone, which supports the buy call on the stock.
Thus i recommend a buy on the stock at current levels and on dips to Rs 226 with stoploss of Rs 222 on closing basis for the target price of Rs 265/285.
1st trgt acvd at 265. Book partial profit and hold balance with sl of 240.
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