The above weekly chart shows bullish outlook for the short to medium term. The stock has completed its corrective phase. It has exactly reversed from the gap support placed at 109 – 102 range. Few weeks back the stock gave a breakout from the falling wedge pattern which is a significant bullish reversal. In addition the recent price developments are making higher highs and decent volumes are witnessed in the support zone. According to Elliott Wave perspective, Zig Zag (a-b-c) correction has completed and now we are in bullish leg likely to be impulsive move. Support level placed at 143 – 132 and resistance level placed at 170 – 179.
On the daily chart the stock is trading above its 50 DMA and 100 DMA i.e. 132 and 137 respectively. On the weekly charts, the momentum indicators and key oscillators are placed with multiple legs of positive divergence.
Recommendation: Investors can accumulate the stock at current levels or on dips till 143 levels for initial up move till 200 - 225 levels and on sustaining above the 225 levels for couple of trading sessions, we expect the stock to continue its positive momentum for the next leg of up move till 260.
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