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The stock surged 7.5 per cent accompanied by extraordinary volume breaching its immediate resistance at around Rs 94 on Friday. Since peaking from its January 2013 peak of Rs 194, the stock has been on an intermediate-term downtrend. Nevertheless, the stock found support at 65.9 in late July 2013 and reversed direction.
Since then, the stock has been on a short-term uptrend. It has decisively breached its 21- and 50-day moving averages in the week ago and is trading well above them. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is moving higher in the neutral region towards the bullish zone. The daily moving average convergence divergence indicator has been moving higher in line with the stock price since late July 2013. Both the daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest.
Our short-term outlook on the stock is bullish. We anticipate its up trend to continue and reach our price target of Rs 101.5 or Rs 103.5 in the approaching trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 95.2 level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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