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After testing the 200-day moving average, the stock fell sharply inline with expectations and achieved the price target of ₹255 last week. Subsequently, the stock bounced back, recovering some losses and ended the week with a 4.6 per cent fall.
The medium-term downtrend will remain in place as long as the stock trades below the key resistance level of ₹291. The short-term trend has been sideways in the broad range between ₹250 and ₹291 since late March.
This sideways movement can continue for a while. Only a decisive breakthrough on either side of this range will give a clear medium-term direction for the stock.
Therefore, traders with a short-term view should tread with caution as long as the stock moves between ₹250 and ₹291. Key immediate resistances are at ₹273 and ₹291.
Decisive breach of ₹291 can take the stock higher to ₹305 and ₹315; a fall below ₹250 can pull it down to ₹240 or ₹234 levels.
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