Traders can buy the stock at around current level and add on dips around Rs 1,275-1,280 with a stop loss below Rs 1,240 for the target of Rs 1,450, says Abhishek Mondal of Guiness Securities.
Moneycontrol News
Abhishek Mondal
After making an all-time high of Rs 1,332 in May 2018, Asian Paints has been seen in a profit booking mode. In daily scale, the stock took support on 50 DMA and then bounced back and formed a flag formation.
The stock has given a breakout from this pattern with strong momentum and high volumes on Monday. The daily Relative strength index (RSI) showing positive momentum and MACD trading above zero line with positive crossover whereas (+) DI continuously trading above (-) DI, suggesting consolidation phase is over in the stock.
Traders can buy the stock at around current level and add on dips around Rs 1,275-1,280 with a stop loss below Rs 1,240 (closing) for the target of Rs 1,450.
Disclaimer: The author is Research Analyst, Guiness Securities. The views and investment tips expressed by investment experts on moneycontrol.com are his own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.First Published on Jul 4, 2018 12:14 pm