SKS Microfinance (₹604) appears poised for a decent rally in the medium term. The stock finds immediate resistance at ₹658 and a close above this can take it to ₹740. However, only a close above ₹1,045 will change the long-term outlook to positive for SKS Microfinance, which hit its life-time high of ₹1,491.5 in September 2010.
SKS Microfinance finds immediate support at ₹586 and a close below that could weaken the stock and take it towards ₹529.
F&O pointers: SKS Microfinance May futures added open interests on Friday, along with rise in underlying share price. This is a positive indicator, as traders are building long positions, expecting further upside. Options are not very active.
Strategy: Traders can consider going long on SKS Microfinance with a stop loss at ₹586. While short-term traders can consider booking profits at ₹658, those with a long-term appetite and who can withstand market swings, can hold on till ₹740. Stop-loss can be moved to ₹610.
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