is a good stock to buy that can yield handsome returns of 10% in the next few days.
The stock price went up by almost 8% yesterday (18/05/16) with 10 fold jump in the volumes after the company has reported better than expected consolidated net profit for the fourth quarter ended March 31, 2016 (Q4FY16).
Today, heavy profit booking has dragged the stock down by 5%.
The correction today offered an attractive entry to the stock and I believe many long term investors will start to accumulate the stock from tomorrow and easily take the stock to 300 levels in less than week or so.
Another reason why this stock is an attractive buy is the “breakout” this stock has provided when it went on rampage yesterday.
During Jan’16, the stock offered “double top” breakout in the downside at 272 levels and took the price down up to 200 levels in Feb’16.
Since the breakout, the stock tried to breach the support turned resistance twice but without success
- Once during the return move post double top breakout
- Another during Apr’16 when market started to move up
This support turned resistance was shattered yesterday in the third attempt and now it offers a good support to the stock in the downside.
How to trade?
- Track the global market before NSE/BSE open
- If the global market is up and shows momentum during pre-market, one can initiate position at the market price with a SL at 260
- If the global market is down place a buy limit order at 272 with a SL at 260