The stock of Elgi Equipments is currently consolidating sideways over the last week. The broader trend has been up since end-January. As such, the chances are high for the stock of Elgi Equipments to break the current sideways consolidation on the upside. ₹433-₹462 has been the trading range. The region between ₹432 and ₹430 is a strong support zone that can limit the downside. We expect Elgi Equipments to breach ₹462 and rise to ₹500-₹510 over the next three-four weeks.
Traders can go long at current levels. Accumulate on dips at ₹440. Stop-loss can be kept at ₹418. Trail the stop-loss up to ₹460 as soon as the stock moves up to ₹475. Move the stop-loss further up to ₹480 when Elgi Equipments touches ₹490 on the upside. Book profits at ₹495.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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