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After an intermediate-term downtrend from the July 2014 peak of ₹331, the stock found support at ₹180 in May 2015. After forming an inverse head and shoulders pattern over the past three months, a bottom reversal pattern, the stock decisively broke through its neckline at around ₹212 on Thursday. It jumped 5.6 per cent accompanied by extraordinary volume in that session. Traders with a short-term perspective can buy the stock on corrective declines.
Both the daily and weekly price rate of change indicators are hovering in the positive territory, implying buying interest. Since early May, it has been in a short-term uptrend which is strengthening by the day. The outlook is bullish. Make use of the corrective declines to buy the stock while maintaining a stop-loss at ₹216 levels. Resumption of the uptrend can take the stock northwards to ₹232 and then to ₹236.5 in the short term.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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