CMP Rs 816, TGT Rs 920, Stop Loss Rs 785
The stock has been in a long term uptrend but after making a high of Rs989.5 in October 2012 it has been consolidating with a negative bias. Currently the stock is near the weekly trend line support formed by joining the lows of February 2010 and February 2011 which coincides with the 38.2% retracement level of the entire rise from January 2012 to October 2012. BATA INDIA can be accumulated around Rs809 - Rs818 which is expected to provide strong support to the stock.
In the previous uptrend the weekly RSI broke above the 60 levels establishing a Bullish Range therefore the current RSI level of 40 should also act as a support.
Recommendation: Nirmal Bang initiate a Buy call on BATA INDIA with a Target of Rs 920. Traders can keep a stop loss at Rs 785 on a closing basis.
The stock has been in a long term uptrend but after making a high of Rs989.5 in October 2012 it has been consolidating with a negative bias. Currently the stock is near the weekly trend line support formed by joining the lows of February 2010 and February 2011 which coincides with the 38.2% retracement level of the entire rise from January 2012 to October 2012. BATA INDIA can be accumulated around Rs809 - Rs818 which is expected to provide strong support to the stock.
In the previous uptrend the weekly RSI broke above the 60 levels establishing a Bullish Range therefore the current RSI level of 40 should also act as a support.
Recommendation: Nirmal Bang initiate a Buy call on BATA INDIA with a Target of Rs 920. Traders can keep a stop loss at Rs 785 on a closing basis.
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