Grasim Industries Ltd's shares gained as much as 2.06 per cent to Rs 1020, and the stock may have ended a corrective cycle that started in November 2017.
According to technicals, the stock had formed a five wave corrective pattern after November 2 2017 record of Rs 1,300 and broke above its upper trend-line last month. The stock sees a bounce on Tuesday after it found a support at the trend-line on Monday during the pullback, which confirms, the stock is no more in the corrective cycle.
The wave pattern further suggests a five wave uptrend has started for the stock that will constitute the final wave (5) of a larger degree. The 14.6 pct Fibonacci projection level of the uptrend from November 21, 2016 low to November 2, 2017 high (wave (3)) is expected to support the stock in the near term, while 23.6 per cent level to act as a resistance.
Grasim stock had fallen 14.3 per cent this year as of last close, while the broader NSE Index gained 8.13 per cent in the same period.