The stock has corrected sharply from its peak of Rs504 levels in January 2008 to a low of Rs188 in early July 2008 representing a correction of almost 62%. Thereafter, it recovered from its low to touch a high of Rs310 levels.
Since then, it has been consolidating in a range between Rs240-310 levels. On 16 September, the counter was trading at 320 levels above this consolidation range accompanied by high volumes.
It also closed above its near-term and short-term averages. The daily RSI is already suggesting build-up of momentum on the upside. Based on above mentioned technical evidences, we recommend traders to BUY the stock at current levels. A stop loss above Rs308 is recommended on all long positions.