The stock has rallied smartly from a low of Rs518 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 weekly 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, indicating that the prices are set to rally from the current levels.
The stock is trading close to its 26-DMA, placed at around Rs982. A sustained move past the Rs990 levels will see the stock heading towards the levels of Rs1,050-1,060 in the medium term.
We recommend traders to BUY the stock between Rs980-992 levels for an initial target of Rs1,050 with a stop loss of Rs960.