The stock has given a breakout of a ‘Falling Supply trend line’ on the daily charts with a Bullish candlestick. The overall structure of the counter is very bullish, as it is trading above all of its important moving averages. In addition, the technical indicator Ichimoku cloud suggests that the price is trading above the conversion & baseline, which shows a Bullish trend in the counter. A momentum indicator RSI (14) reading is above 55 levels.
So, based on the above-mentioned technical structure, one can initiate a Long position in the stock at CMP Rs 222.95, or a fall in the price till Rs 220.50 levels can be used as a buying opportunity for the upside target of Rs 237. However, the bullish view will be negated if the stock closes below the support level of Rs 216.
(Mahesh Prakot, Research Analyst, Bonanza Portfolio)
