The stock recorded its 52-week low of Rs1,040 levels in October 2008. The share price witnessed a smart pull back rally thereafter to a peak of Rs1,447 in November 2008, before correcting back to Rs1,065 levels in December 2008.
The price movement since December 2008 has occurred along the up-ward support trend line. The daily RSI is already in strong buy mode.
The stock has closed above all its key daily moving averages. Yesterday’s upmove was accompanied with higher than average volumes. A move past the levels of Rs1,235-1,240 could take the stock towards the levels of Rs1,300 and above.
Keeping in mind the above-mentioned evidences, we recommend traders to BUY the stock between the range of Rs1,225-1,240 with stop loss of Rs1,205 for an initial target of Rs1,285.