Buy and HOld around Rs570, Target Rs600
On the daily chart, the stock has formed a bullish price channel. It is a continuation pattern that slopes up and is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line denotes support. The lower support line was formed from January 2010. Subsequent low in the month of February and March confirmed the support line. The upper resistance line is drawn from January 2010 onwards. Since then, the stock has been moving back and forth between the two parallel lines. On Monday, the stock attempted to break out from the resistance line with above average volumes. A break above resistance is likely to lead to acceleration in the stock price. We recommend traders to buy in the range of Rs567-573 with a stop loss of Rs558 and a target of Rs595 and Rs600.
