The stock could not escape the sharp fall in the broader market and corrected from a high of Rs178 in September 2008 to a low of Rs47 in October. This was a panic bottom and the stock rallied up to the levels of Rs98 without a retest of this low.
On the daily charts, the price movements appear to have formed a higher bottom formation. In November, the stock consolidated around the newly formed support of Rs51 before rallying to the levels of Rs106. Market-wide correction brought the stock towards the levels of Rs58.
The bullish formation is confirmed after the stock gave a close above its short-term moving averages on Friday. Recent rally has been accompanied with impressive volumes.
Short-term investors should look to accumulate the stock at current levels and on dips up to the levels of Rs73 range with a stop of Rs69 for a short-term target of Rs90-93 in the coming trading sessions.