The stock has rallied smartly from a low of Rs113 in October-end 2008 to the present levels. Despite the ongoing volatility in the market, the stock has managed to hold on to the support of its short-term trendline.
On the daily charts, it has formed a pattern of a higher bottom. It is considered as the initial sign of a bottoming out process in the short term.
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. The stock is trading near to its 200 DMA, placed at around Rs174.
A sustained move past the Rs174 levels will see the stock heading towards the levels of Rs190-195 in the medium term.
We recommend traders to ACCUMULATE the stock between Rs166-174 levels for an initial target of Rs190 with a stop loss of Rs160.