The stock has made a double bottom formation pattern in the daily chart at around 54.60 levels and currently has moved past the significant 34 WMA and also on the verge of a breakout above the 50 DMA moving average. The indicators are favorable and with the chart looking attractive, the bias has been maintained positive. With tremendous volume participation witnessed, we recommend a buy in this stock for an upside target of 68 keeping a stop loss of 57.
BUY DIVIS LAB
CMP: Rs 1,100.95
TARGET: Rs 1,220
STOP LOSS: Rs 1,040
The stock has given a decent correction from the peak of 1220 to bottom out at around 1020 levels where also the 200 DMA moving average lies and currently has recovered significantly to maintain a positive bias. The RSI has also recovered strongly from the oversold zone and has made a steep rise to signify strength and has potential to rise further in the coming days. With rising volume activity seen, we recommend a buy in this stock for an upside target of 1220 keeping a stop loss of 1040.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.