The stock recorded its 52-week low of Rs130 in late October 2008. Thereafter, it rallied to a high of Rs211 levels in early November 2008. The ongoing weakness in the market brought the stock back to the levels of Rs140.
The stock has managed to hold the Rs140 support levels on a closing basis despite the widespread volatility. Adjoining daily candlestick chart clearly suggests Multiple Bottom formation at the Rs140 levels.
The gain in share price from a low of Rs141 in the current week has been on back of increasing volumes, suggesting strong buying at the support levels. The daily momentum oscillators i.e. RSI and MACD are suggesting strength in the upmove.
Keeping in mind the above-mentioned technical evidences we suggest traders to BUY the stock at current levels and on declines up to support of Rs155-158 with a stop loss placed at Rs147 levels for target of Rs180-195.
A stoploss below Rs140 must be followed on all the investment positions.