Price Action Analysis:
The stock corrected from all-time high and took support at INR 2500-2510 zone. Recently, it witnessed a formation of bullish triangle. The triangle is formed with resistance at INR 2680-2690zone and support at INR 2500-2510 zone. A strong bullish trend was seen in the last 6 months.
Moving Average:
The stock has been trading above the 20 and 50 EMA for the last 6 months. A convergence between the EMAs highlights consolidation. The 50 EMA is around INR 2560 which can be looked as a support level.
Bollinger Bands:
The stock has been trading within the Bollinger band for the last 2 weeks. The band was breached on the lower level when the stock broke INR 2500 level. The upper band level stands at INR 2650-2660 zone which can act as resistance.
Mool’s Outlook:
We anticipate a target of INR 2,850 in the stock in the next 6-9 months, which reflects a 12% upside in the stock. Stop Loss should be maintained at INR 2450.
Disclaimer:
Mool Capital Limited is a SEBI Registered Research Analyst having registration no. INH000012449. This report has been prepared by Mool Capital Pvt. Ltd. and is solely for information of the recipient only. The report must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. This document is not, and should not, be construed as an offer or solicitation of an offer, to buy or sell any securities or other financial instruments. This report should not be construed as an invitation or solicitation to do business with Mool Capital. Mool Capital and its affiliated company(ies), their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.
