Technical view on GRUH FINANCE LTD.The stock has tested a high of 317.70 in January 2015 and corrected to the levels of 189.50 in May 2015. Since May 2015 to till date the stock has formed a good base between the price range of 220 and 260. The recent up move in the stock indicates that the stock is coming out of the consolidation phase and is likely to move on the higher side. From last few trading sessions the stock has crossed and sustained above its 200 DMA which is currently placed around the levels of 253.Recently the stock has attempted to cross its previous 6 months high price with strong volume participation, which indicates that the stock price is attempting to shift in the higher range.Increasing volume in the stock in last few weeks coupled with consistent week on week price gains from last three weeks, suggests strength in the stock. The stock has formed a double bottom pattern around levels of 222 on daily and weekly chart and it is attempting give breakout of the same pattern.All of the above mentioned technical specifications indicate that the stock has the potential to test the levels of 315 in the medium term.
Buy GRUH FINANCE LTD. at Rs.260.65 and on dips up to Rs.250 with stop loss placed at Rs.240 (closing basis) for the medium term price target of Rs.315.
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