Despite seeing a steady declining trend last week, the stock managed to hold on the crucial levels of Rs141, amid extreme volatility. The short-term trendline is acting as a strong support since last week of October 2008.
The stock has bounced off from the above-mentioned levels on three occasions. Below that, Rs132 appears as formidable support though; the stock went down by over 4% on Monday. The downside persists till around Rs132.
As and when there is a burst of short covering, it could rise again till around Rs165-170. It has the potential to move till Rs180 before it runs into resistance. Maintain a stop loss of Rs131 and go long. Increase the position if it closes above Rs151.