RECOMMENDATION - BUY AT CMP
TARGET- 294 , STOP-230, TIME -T+14 DAYS (APPROX)
RATIONALE -
The stock had a dream run post its listing on the bourses. A direct play on the consumption story and emergence of the affluent middle class, has brought the stock on the radar of every portfolio manager wanting to generate alpha for his portfolio.
The stock topped out around 260 and has been correcting in a downward sloping channel since then. Today's upmove has decisively breached the upper reaches of this channel with decent volumes. This phenomenon is hinting at the possible resumption of the uptrend.
The brief correction in terms of time (1.5 months) and quantum (38.20% approx) indicate the innate strength of the stocks benefiting from the consumption boom.
Traders may consider buying the stock at cmp of 247.50 with a stop placed at 230 (if the stock reaches 230, the prognosis of the breakout of the channel would negated)
UPGRADE TO WAVE PRO AND GET TIMELY TRADING CALLS ON YOUR MOBILE (Rs 100 per call only)
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.
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