Since the March 2009 low of Rs 10, the stock has been on long-term uptrend forming higher peaks and trough. Taking support from its long-term uptrend line around Rs 46, Arvind skyrocketed 30 per cent with good volumes last week.
It has decisively crossed its 21- and 50-day moving average positioned at Rs 50 and is hovering well above them.
Move above Rs 66.5 can lift the stock higher to Rs 80 and then Rs 85 in the medium-term.
Nevertheless, reversal from the resistance at Rs 66.5 will drag the stock down to Rs 55 or further down to Rs 50. Decline below Rs 42 will be a threat for the uptrend. — Yoganand D.
Source : Businessline.com
OUR RECOMMENDATION :
The scrip is finding good support around 50 levels and is finding it difficult to go through 70 levels. This present excellent trading opportunity to buy around 50 levels and exit at 65 which gives you an upside of 35% holding period of 3-4 months.