On the daily chart, the stock has formed a bullish Price channel. In the above pattern, the stock slopes up and is bound by an upper and lower trend line.
The upper trend line marks resistance and the lower trend line resembles support. The lower support line was formed from third week of June 2009. Subsequent lows confirmed the support line. The upper resistance line is drawn from second week of June 2009 onwards.
Since then, the stock has been moving back and forth between the two parallel lines. On Monday, the stock rallied by 2% confirming the bullish set up. We expect the stock to break past the critical resistance levels of Rs2,478.
The other supportive technical oscillators are positive and the upmove may extend to the levels of Rs2,570 and Rs2,590.
We recommend traders to BUY the stock in the range of Rs2,430-2,460 with a stop loss of Rs2,390 on all long positions.