The post election euphoria led to a sharp rally in the stock which saw it touching Rs236 during the month of June. Since then, the stock has corrected but managed to hold on Rs170-180 range despite volatility in the month of July.
Last week, the stock broke past the short-term downward sloping trendline. The momentum indicator RSI is exhibiting positive movement suggesting further upside in the near term.
We believe a move past Rs224 level will see the stock testing June 2009 peak.
Keeping in mind the above mentioned technical parameters, we recommend traders to BUY the stock in the range of Rs221-228 with SL of Rs215 for target of Rs238 and Rs240.