RECOMMENDATION - BUY AT CMP
TARGET- 57 , STOP-47.50, TIME -T+14 DAYS (APPROX)
RATIONALE -
The stock peaked around 50 in August after the stupendous upmove. Ever since then, the stock was languishing in a 10-15% range. Today's move however is unlike the others that have taken place in the last couple of months.
With the rally above 50, a breakout of a 'rectangle' pattern on the daily charts in confirmed. Distinct pick up in turnover lends credence to this breakout. The fact that the consolidation prior to the breakout occured just above the erstwhile high of 43 established in 2008 makes the stock even more interesting.
The bullish recommendation comes under the threat if the stock slips back into the trading range. Hence, a stop of 47.50 is advisable on this long trade.
With the rally above 50, a breakout of a 'rectangle' pattern on the daily charts in confirmed. Distinct pick up in turnover lends credence to this breakout. The fact that the consolidation prior to the breakout occured just above the erstwhile high of 43 established in 2008 makes the stock even more interesting.
The bullish recommendation comes under the threat if the stock slips back into the trading range. Hence, a stop of 47.50 is advisable on this long trade.
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Disclaimer : The recommendations mentioned herein are for educational purpose only. One should not take buy/sell decisions based on the above analysis which is prone to errors. The author does not undertake any liability whatsoever arising out of profits/losses accruing from using the above analysis.