Last week, the stock started on a positive note and extended its rally. However, it tested a key resistance at ₹900 as well as 200-day moving average. Following a false break-out (blip above Rs.900), the stock started to decline and gave away its initial gains. It closed the week with gains of just 2.7 per cent.
The indicators in the daily chart show mixed signals and there is a decrease in daily volume. Hence, an emphatic breakout of Rs.900 is needed for an up move to Rs.920 and Rs.940. If the decline extends and the stock falls below the immediate support at Rs.875, it can be dragged further to Rs.860 and Rs.840.
Next important supports are at Rs.826 and then at Rs.800-810 zone. The stock has been on a medium-term downtrend from its July peak of Rs.1,067. To alter this medium-term downtrend, it has to decisively break the trend-deciding level of Rs.940 for an upmove to Rs.970 levels.
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