RECOMMENDATION : BUY AGGRESSIVELY AT CMP
Target -37 , Stop:22, Time Horizon: 4 months
Rationale :
Elliott Perspective : Wave 1 and wave 2 have played out since the low of 08-09. Breach of the trendline shows the end of the 1st with the 2nd wave retracing barely 23% portraying innate strength in the stock. 1st and 2nd wave of the 3 rd seems to have been done and a move above 27 would give confirmation about the commencement of wave 3 . However it may be prudent to initiate positions right away because it may be very difficult to buy since the wave 3 is expected to be explosive.
Risk Perspective : The stock is currently trading very close to its support zone around 22.50-24. The stock has comfortably held on to this zone despite the ups and downs in the broader market in last few months. Hence, buying near the support is likely to be a safe ploy.
Peer Group Price Movement : Kohinooor Foods is trading at its rock solid support of 54 whereas Daawat too is doing the same around 60 (very close to the lows registered during the panic sell off of 08-09)
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