The stock is in an uptrend across all time-frames — short, medium and long term. However, it encountered resistance at around Rs.1400 in April this year and started moving sideways.
As you sit on a 20 per cent profit, consider booking profits at the current juncture, and also in the light of the present market volatility. In addition, the indicators and oscillators in the weekly and monthly chart display negative divergence indicating a potential trend reversal.
A downward reversal from the immediate resistance will pull the stock down to Rs.1175 levels.
Key supports below this level are placed at Rs.1,135, Rs.1,100 and Rs.1,000.
An emphatic fall below Rs.1,000 will alter the medium-term uptrend and pull the stock further down to Rs.900 and Rs.800 levels. But, a conclusive rally above Rs.1,400 can take the stock higher to Rs.1500.
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