The stock recorded its 52-week low of Rs372 in late October 2008. Thereafter, it rallied to a high of Rs670 in early January 2009. However, selling pressure brought the stock to the levels of Rs474.
The stock has managed to hold the Rs470-480 support levels on a closing basis despite the widespread volatility. The gain in the stock price from the above-mentioned levels has been on back of increasing volumes, suggesting strong buying at the support levels.
The daily momentum oscillators i.e. RSI and MACD are suggesting strength in the upmove.
Keeping in mind the above-mentioned evidences, we suggest traders to BUY the stock at current levels and on declines up to the levels of Rs540 with a stop loss of Rs532 for an initial target of Rs580.