Time frame - short term.
Chart TF - Daily
1) Stock has managed to move back above 200 with good volumes.
2) Incidentally, this has been one of the strong long term support zones as well.
3) Currently stock is in the process of taking a breather with low ; usually low is the sign of a vol expansion and the last 3-4 days price action suggests the probability of vol expansion favouring upside is relatively good.
4) Stock price action has led to the break the downward sloping resistance line suggesting that there has been some interest in this stock compared to broader index.
5) crossover in the oversold zone should provide additional comfort with a much favoured risk reward.
6) Historically stock has gone below 200 on 2 occasions and has managed to cross above 200 immediately with crossover in the oversold zone. Stock has given good returns post this event. Current scenario is possibly the third time.
Traders can go long on current series at cmp. Adust stops as the indicated levels are for spot.