The scrip is showing initial signals of a reversal in the downtrend since January. The steep fall from January’s high of Rs.58.6 halted in August. The stock has formed a strong base between Rs.15 and Rs.20 over the last three months.
The outlook is bullish and the stock can extend its rally in the coming weeks. Moreover, there is a strong support in the Rs.18.5-17.5 zone which can limit the downside in case of a pull back. Only a decline below Rs 17.5 will turn the outlook negative, which looks less probable at the moment. Also, there is a high probability of fresh buying if the stock declines to the Rs 18.5-17.5 support zone.
A strong break above Rs 27.7 will take the stock towards Rs 32 and Rs 39 — the next targets. Buy the scrip without any fail, as it is a profit making company.