Sterlite Industries

Sterlite Industries (BUY, between Rs170-171, Target Rs181): Sterlite on the daily chart has given breakout from ‘rounding saucer’ pattern above Rs170 on 30th Mar 2011 and hence forth as long the stock holds above the support  levels of Rs170, there is high probability of stock testing levels of Rs187 in the near term. Currently stock is on its way to retest the support line which is placed at Rs170.Analysing the volume trend on the day to day basis suggest that volumes have been expanding during the upmoves and contracting during the downtick which suggest accumulation phase at lower levels. The daily RSI too has been holding the support of 50 mark which exhibits strength and could move into an overbought position of 65 in the near term. We advise buying stock in the range of Rs170-171 with stop loss of Rs166 for Target of Rs181. (Duration 5 days)