The recent rally in the broader market has seen the stock bouncing from its 52-week low of Rs42. It is now testing critical resistance levels of Rs68-70.
However, volumes in the last few trading sessions have been much reduced and that makes a breakout from the above mentioned resistance levels unlikely. Moreover, the stock is trading well below its 34-DMA.
We expect the stock to retrace till about the Rs60 levels. Profit booking from current levels will see the stock heading towards Rs55-58 levels in the coming sessions.
Traders should look to SELL at current levels and on rallies to resistance of Rs70-71 levels. A stop loss of Rs74 is recommended on short positions.