The stock climbed marginally in the midst of volatility in the previous week. Following a sharp fall in late October, the stock has been moving sideways for the past three weeks in the range between Rs.235 and Rs.250.
The lower boundary, which is a key support level, also coincides with the 61.8 per cent Fibonacci retracement level of the stock’s prior upmove.
An emphatic downward breakthrough of Rs.235 can mitigate the near-term uptrend and pull the stock down to Rs.230 and then to Rs.220. But the stock faces a significant resistance in the Rs.250-Rs.260 range.
A strong rally above this is needed to reinforce the bullish momentum and take the stock up to Rs.270 and Rs.280.
Traders should thus tread with caution as long as the stock moves sideways and only initiate fresh positions based on the break-out.
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