Targets : 3765-4073 Buy range : 3565-3580 Stoploss : 3335 Duration : 4-5 weeks
Outlook :
Looking at the Daily chart, stock has seen tremendous rally from the bottom of around Rs 2772.85 (December 23,, 2016) and rallied till Rs 3799.50 (May 15, 2017).
Subsequently, the bullish momentum got cooled off and stock gradually corrected till Rs 3375-3371. The said levels coincides with the multiples supports. First, the upward sloping trendline (black line) and 38.2% retracement of its entire move from the bottom of Rs 2772 to the top of 3799 levels.
Moreover we observed stock formed a “Bullish engulfing” candlestick pattern as on 31-05-2017 on daily charts and “Three Outside Up” candlestick pattern was formed on previous trading session. The above said pattern is a bullish trend reversal pattern of strong reliability. It is formed at the downtrend at a possible support.
Technical indicators are giving positive signals, 3-Days(EMA) has crossed above 13-Days(EMA), Bullish MACD line is crossed over zero line today. RSI (14) came above 55 levels and showed sign of reversal. Slow Stochastic is rising above oversold range.
Considering the above technical patterns, we are expecting stock to resume its primary trend and hence we advise to buy this stock at a (price range 3565-3580) with an upside price target of 3765-4073 / Higher. Strict stop loss should be placed at 3335 below which our bullish view will be negated.
Outlook :
Looking at the Daily chart, stock has seen tremendous rally from the bottom of around Rs 2772.85 (December 23,, 2016) and rallied till Rs 3799.50 (May 15, 2017).
Subsequently, the bullish momentum got cooled off and stock gradually corrected till Rs 3375-3371. The said levels coincides with the multiples supports. First, the upward sloping trendline (black line) and 38.2% retracement of its entire move from the bottom of Rs 2772 to the top of 3799 levels.
Moreover we observed stock formed a “Bullish engulfing” candlestick pattern as on 31-05-2017 on daily charts and “Three Outside Up” candlestick pattern was formed on previous trading session. The above said pattern is a bullish trend reversal pattern of strong reliability. It is formed at the downtrend at a possible support.
Technical indicators are giving positive signals, 3-Days(EMA) has crossed above 13-Days(EMA), Bullish MACD line is crossed over zero line today. RSI (14) came above 55 levels and showed sign of reversal. Slow Stochastic is rising above oversold range.
Considering the above technical patterns, we are expecting stock to resume its primary trend and hence we advise to buy this stock at a (price range 3565-3580) with an upside price target of 3765-4073 / Higher. Strict stop loss should be placed at 3335 below which our bullish view will be negated.