: The stock is holding the gains and consolidating from last eleven trading sessions even after profit taking seen in the broader market. It has been hovering near its lifetime high levels and a follow up buying at the current price juncture may take the stock in new higher territory. The support is shifting higher in the stock as earlier it was taking support around 525-530 zones then same shifted to 550 levels and now the support is around 565 zones. Thus recommending buying the stock with the stop loss of 565 for the upside target of 607 levels.
The stock has given a breakout by forming higher top – higher bottom formation from last five weeks and crossed its multiple series hurdle of 345 zones. The stock has formed a positive price structure and longs are intact in the counter even at current price juncture with fresh Open interest addition of around 8% in previous session. So, recommending buying the stock with the stop loss of 333 for the upside immediate target of 356 levels.
The stock is making lower top – lower bottom formation from last two weeks as it failed to surpass the multiple hurdles of 725 zone and finding selling pressure at the higher levels. It broke its support of 700 and is witnessing built up of short position thus supporting our negative view in the stock. One can sell the stock on a small bounce back move with strict stop loss of 718 for the downside target of 675 levels.
: We are suggesting these stocks to our clients but not personal holdings.
Chandan Taparia is a Derivatives Analyst - Equity Research at Anand Rathi