The stock rallied smartly from a low of Rs148 in June 2008 to a high of Rs197 levels in July 2008. It has been trading sideways in a broad range between Rs193-Rs162 levels since late July 2008 till date.
The prices have tended to hold the Rs165-168 levels on a closing basis despite the recent weakness in the broader indices. Friday’s smart rally has seen the stock close above all the near term and short term averages.
The daily RSI is already in strong buy mode and the daily MACD has generated a cross over buy signal, indicating that the prices are set to rally from the current levels.
Volumes have also increased steadily over the past few trading sessions, suggesting accumulation at the lower levels.
A sustained move past the Rs197 levels will see the stock heading to the Rs205-210 target levels in the coming weeks. A stop loss below Rs172 is recommended on all long positions.