Zensar tech is forming cup and handle on the charts but the right part of the cup is yet in making. An ideal or theory on cup and handle says that there needs to be prior uptrend in the stock before the pattern is being created as we can see with the yellow arrow. A correct C&H patterns forms anywhere between 8-24 weeks , higher the time frame better the chance of execution. Here it is more in middle of the best case scenario with the rest of the cup yet to form. Another strong point to note is the end of cup is near to the multi year resistance level the stock has not able to break . Hence if momentum plus volume persists the cup might not even form the handle and right away break the resistance level. The target for the cup is usually the depth of the cup and here one can calculate targets accordingly.
Disclaimer : I am not a SEBI registered analyst and the above chart is just a study about the chart and patterns related to it.
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The stock closed above important levels of 300 in a weak market today. now its the support. the shape has kind of become weird but we will get to knw things better once it reaches 350
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As mentioned earlier the cup is formed and due to ath being resistance , that is taken out without forming a proper handle. the numbers support the rally (Q1) and cmp is 419.. here sl can be maintained at 400 for a higher target on closing basis