RECOMMENDATION - BUY AT CMP
TARGET- 89 , STOP-73.50, TIME -T+14 DAYS (APPROX)
RATIONALE -
The stock had been trading in a zone of 71 to 80 since the last couple of months. This period of relative silence can be construed as a pause in the overall trend looking at the structure that has evolved.
The price formation looks like a right angled triangle and today's upmove seems to have resulted in a breakout. Since the width of the triangle was about 9, a target of 89 on the short term looks very imminent.
A fall in the prices to 73.50 however would mean that the stock comes back in the trading range convincingly and the prognosis of a breakout would not hold water. Hence this level may be used as a stop for long positions.
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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.
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