The stock dived 78 per cent from its long-term peak formed in May 2008 to the low of Rs 85 in the last bear market. But the recovery in 2009 was equally spectacular and it was able to move close to its long-term peak once more in July this year.
The stock is however facing strong resistance in the band between Rs 300 and Rs 400 and was vacillating in this range in the first 11 months of this calendar. The lower boundary was breached on November 25 and the short-term outlook for the stock is weak. Short-term investors should divest their holdings on a close below Rs 260 since that would suggest a propensity to decline to Rs 240 or Rs 204 in the months ahead. Stop for long-term investors should be at Rs 200.
If the stock holds above Rs 260, it would denote long-term strength and the possibility of a break-out higher to Rs 455 or Rs 500 over the next 12 months.
Source : Businessline.com
OUR RECOMMENDATION :
The scrip is finding good support around 250 levels and is finding it difficult to go through 370 levels. This present excellent trading opportunity to buy around 250 levels and exit at 365 which gives you an upside of 45% holding period of 3-4 months