The stock had been facing stiff resistance around the levels of Rs42-43 from August 2008.
Last week, the stock overcame the crucial resistance levels and closed above it. The up move was accompanied with heavy volumes. In fact, the volumes recorded were the highest in over seven months.
Moreover, on the weekly chart, the price movement has formed a higher bottom formation.
We expect the stock to rally in the medium term. Traders can ACCUMULATE the stock in the range of Rs47-49 for a target of Rs54 and Rs55. It is advisable to maintain a stop loss of Rs45.5.