On the weekly chart, the stock (SRF) is on the verge of a breakout. The stock has formed an Inverted Head and Shoulders formation with the neckline placed at Rs81.
We believe a successful close above this level could lead to a strong rally in the counter. Since November 2008, the stock has been moving in a range of Rs62-81.
In our view, the stock has formed a medium term bottom around the levels of Rs60-63 and we expect a move past Rs81 to take the stock around the levels of Rs95-100.
Based on the above-mentioned technical evidences, we recommend traders with high-risk appetite to BUY the stock at current levels and up to the levels of Rs77 for an initial target of Rs85.
A stop loss of Rs74 is recommended on all long positions.