Buy Supreme Industries; target of Rs 810: ICICIdirect

ICICIdirect.com has recommended to buy Supreme Industries in the range of Rs 698-708 for a target of Rs 810 with a stop loss below Rs 648, in its research report dated March 11, 2015.

The share price of Supreme Industries remains in a secular uptrend as it continues to stride northwards in a rising peaks and troughs manner on the long term price charts. Currently, the stock is seen resolving higher after a six month consolidation, thereby providing a fresh entry opportunity for medium term traders to ride the next up move.

The stock hit a life-time high of Rs 689 in September 2014. Thereafter, it went into hibernation mode to work off excesses accrued in the strong rally from Rs 445 to Rs 689 in May-September 2014. The price wise correction was arrested at the 50% retracement of the preceding rally placed at Rs 570. The stock witnessed a steady base formation at the 50% retracement area for five months between October 2014 and February 2015. This basing formation highlights accumulation by stronger hands near key price support and laid the foundation for the next up move.

The strong thrust to new life-time highs during the current week signals the conclusion of the corrective phase of the last six months and indicates at resumption of the primary uptrend. We expect the stock to head towards Rs 814 being the price equality of the current up move from January 2015 low of Rs 570 with the preceding up leg, which measured 244 points (Rs 445 to Rs 689).

Read more at: https://www.moneycontrol.com/news/recommendations/buy-supreme-industries-targetrs-810-icicidirect_1337943.html?utm_source=ref_article