The stock has seen a sharp fall from an all time high of Rs801 in July 2008 to a low of Rs352 in November 2008. Thereafter, the stock attempted a brief rally up to the levels of Rs577 in January 2009.
Selling pressure brought the stock lower towards the levels of Rs380. The daily oscillators like RSI and MACD had exhibited considerable positive divergences near the Rs380-390 range.
The oscillators are currently exhibiting strength and momentum, which suggests that the rally should gather steam in the coming sessions.
The formation of a Bullish Engulfing candlestick pattern on the daily charts is also indicating the shift of momentum in favour of the bulls.
We recommend traders to BUY the stock at current levels and on declines to support of Rs395 levels for a target of Rs430. A stop loss of Rs385 is recommended on all long positions.