The stock has been moving in a bullish Price channel from second week of March 2009. The upper trend line marks resistance and the lower trend line resembles support.
Despite heavy volatility in last few trading sessions, the stock has managed to hold on to the support of its lower trend line. On Tuesday, the stock rallied by over 14% after testing the lower support line, confirming the bullish set up.
We expect the stock to break past the critical resistance levels of Rs177-178. The upmove was supported by expanding volumes.
In fact, the volumes were highest since September 2008. The other supportive technical oscillators are positive and the upmove may extend to the levels of Rs188 and Rs190.
We recommend traders to BUY the stock in the range of Rs173-178 with a stop loss of Rs169 on all long positions.