The stock has witnessed a sharp correction from the peak of 425 towards 300 odd zone and has retraced more than 61.80 per cent from the mentioned levels. At current juncture, the stock is hovering just above the clusters of moving averages on daily chart and also the placement of rising trend on wide horizon depicts that the bullish stance may remain intact. On technical parameters, the 14 period RSI has witnessed positive crossover, affirming the bullishness in the counter.
The stock has been trading in secular up-trend and is in the cycle of higher highs and higher lows. On daily time frame, it is well placed above all its major moving averages and is all set to test its lifetime high zone. On oscillator front, MACD is comfortably placed above its signal-line and even the 14 period RSI has witnessed positive crossover, re-affirming the likelihood that the stock may surge higher in the near future.
The stock is placed in an upward trending channel on weekly time frame in which it is currently placed near the lower line -- historically, this has acted as a strong support base. Also, on daily time frame, the stock is hovering at the placement of 200-DEMA and 200-DSMA which might act as demand zone. In addition, the mean of the Bollinger is expected to act as a major support zone and bounce could be seen in near future.
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