The Stock has successfully completed a pullback. Now, it is expected to retest its recent high of INR 6.8 in short term.
The rationale for buy - Price expansion accompanied by Volume expansion - RSI bullish divergence - Substantial reduction in debt leading to significant improvement in the capital profile (debt to equity ratio is now below 1). The cash flow from operation is now more than the interest obligation. - Potential formation of Cup and Handle pattern
Positional View If the stock crosses above the INR 6.6-6.8 range, it will lead to Cup and handle pattern. Breakout from there will lead to a potential rally till the target of INR 12.75. However, there is an intermediate resistance at INR 10.2
Please note this is not a recommendation, but my opinion. This is only for educational purposes.
Very well explained. I am already invested and following same targets. Thanks for the resonating idea.
manojmadhavi97
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Which dip can I enter for short-term
Sahilkarangia
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@manojmadhavi97 10-20% dip from current price would be a good buy. However, 1. It may not correct that much 2. It may correct more and break the inclined support line (black line).in such case i would wait for the the stock to stabilize a little before adding to the position.
lastly, never invest more than 5% of your portfolio in one stock.