The stock is staging rebound post correction which was witnessed on the back of double top around Rs 1,143 levels on daily scale. Test of 200-EMA (exponential moving average) in the previous session followed by gap-up opening along and strong move on the upside indicate the stock might have resumed its upside post corrective move on the downside. The stock is expected to retest its double-top levels around Rs 1,140 in coming sessions. Hence, longs can be initiated with stop placed below Rs 1,038 levels.
Stock: BATA INDIA
CMP: Rs 1,464
The stock is moving higher in a tight up trending channel and is re post the test of lower channel support around Rs 1,405 levels. Daily RSI recovered above its signal line post downside breach, indicating the momentum might continue till the unfinished target of Rs 1,511 on the upside. Highest call addition at Rs 1,500 strike for May series suggests the stock will probably test the levels in coming sessions. Short term traders can long the stock with stop placed below Rs 1,424 levels for Rs 1,511 to be obtained in coming sessions.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.