The stock price of IDFC Ltd is trading in a strong uptrend in
weekly chart by preserving ‘Higher Highs Higher Lows’ formation. The ongoing
upmove seems to be a copy book ‘Impulse and Corrective Rally’ which led the
stock to bounce back sharply from some or the other Fibonacci retracement
levels. The best part of this rally is
that it is not a vertical rally, which always tends to fizzle out on profit
booking (generally a “V” shape rally is followed by a sharp sell-off too). We
are also observing the formation of ‘Inverse Head and Shoulder’ pattern in
weekly chart, whose neckline is placed at 166 levels.
Looking at the daily
chart, stock price is moving in sideways direction after hitting the 52 weeks
high of 166.65. Recently, Stock has given very strong buy signal by sustaining
above the ‘rounding formation’ which is made in past seven weeks. On Monday,
stock has retested the neckline of the rounding pattern, which also coincides
with ’10 Days EMA’, and bounced back piercingly; thus completed three days
corrective pattern. Momentum Oscillator RSI is positively placed and has taken
support of the breakout trendline in daily chart. One can buy this stock at current market price of Rs 155 and on dips to Rs 153 for a target price of Rs 176 – 187. Stoploss for
the trade should be placed below 149 levels.
