The stock is trading 48% lower than its 52-week high of Rs208, but higher than its low of Rs45 in March 2009. A detailed study of Praj Inds shows a distinctive pattern emerging which signals a temporary bottom.
The stock has broken out from the overall base-like pattern during the past six-months. In fact, the last couple of trading weeks represents a high level bullish congestion area between Rs90-100.
We believe that the current bullish consolidation is likely to lead to a potential upside of over 12%.
Technically, the stock is showing strength along with the momentum, and given the positive oscillators set-up, the stock could outperform in the short-term as long as it sustains above the levels of Rs100.
We recommend traders to BUY the stock in the range of Rs106-111 for a target of Rs120 and Rs123. We advise investors to maintain a stop loss of Rs102.