Following a medium-term downtrend, the stock found support at ₹67 in early February. This was the level from which the stock bounced back in December 2013 as well, making this a significant medium-term support level. Investors with a short-term perspective can buy the stock at current levels. The short-term trend is up. In late February, the stock had decisively breached its moving average compression at ₹71 thus strengthening its uptrend. It has also breached its key resistance at ₹75 in recent times.

On Monday, the stock gained over 3 per cent accompanied by extraordinary volumes, reinforcing the on-going uptrend. The indicators on the daily chart are featuring in the bullish zone providing strength to the uptrend. The stock can extend its rally and reach the price target of ₹84 and then ₹85.5. Buy the stock with a stop-loss at ₹78.7.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

(This article was published on March 10, 2014)
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