The stock had been facing stiff resistance around the levels of Rs22 from last six weeks. On Thursday, the stock overcame the crucial resistance levels and closed above it.
The upmove was accompanied with heavy volumes. Infact, the volumes recorded were the highest in over two months.
Moreover, on the weekly chart, the price movement has formed a higher bottom formation. A move past the Rs26levels will see the formation of a higher top, which will confirm the basic bullish set up.
We expect the stock to rally in the medium term. Traders can ACCUMULATE the stock in the range of Rs21.7-22.7 for a target of Rs26-27. It is advisable to maintain a stop loss of Rs20.