On the daily chart, the stock has broken out from a Symmetrical Triangle pattern. The stock had been moving back and forth within the context of the Triangle from May 2009.
In the above formation, it has converging trendlines that come together at an apex. It is considered a bullish set up. This pattern is marked by a series of lower tops and higher bottoms.
Moreover, on the daily chart, the price movements appear to have formed a higher bottom formation.
In a yesterday’s volatile session, the stock managed to close above its short-term moving averages with bullish divergences. The current breakout is set to take the stock to the levels of Rs760 and above.
We recommend traders to BUY the stock at current levels with a stop loss of Rs730.