After a muted start, the stock surged 2.8 per cent with good volumes on Friday. With this rally, the stock has breached the stock 21 and 50-day moving averages.
The stock is on the brink of breaking the upper boundary of the sideways range between Rs.235 and Rs.250 since late October. However, the band between Rs.255 and Rs.260 is now a significant resistance level which needs to be breached for an up move to Rs.270 and Rs.280.
The daily relative strength index is on the verge of entering the bullish zone from the neutral region. Both the price rate of change indicator feature in the positive area.
Traders with a short-term view can initiate long position on a strong rally above Rs.250 with a stop-loss at Rs.246.
The near-term targets are Rs.260 and Rs.270. Declines can find support at Rs.240 and Rs.235. A fall below Rs.235 will mar the uptrend and pull it down to Rs.230 and Rs.220.
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