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This stock sustained above the key long-term support at Rs 1,000 and moved higher to achieve our short-term target at Rs 1,260.

A morning star is being formed in the weekly candlestick chart.

This pattern, coupled with the 10-day rate of change oscillator moving in to the positive territory, imply that an intermediate term trough could be in place.

But as mentioned earlier, a close beyond Rs 1,400 is needed to signal that the stock is on the path to a sustained recovery. For the near term, there could be a short-term decline. Traders can go long if the stock sustains above Rs 1,168. Fresh longs should be avoided on a decline below Rs 1,100 since the subsequent targets for the stock would be at Rs 1,000 and then Rs 862.

— Lokeshwarri S. K.

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Play defensive in a volatile market

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