CMP 21.75
- Readers of this blog would recall that on 28/4/2012 (SEE THIS), we had outlined 23-25 as a good support zone followed by 20.5.
- 23 level was broken on the downside on 9/5/2012. The next support level identified in the Post dtd 28/4/2012 was 20.5; this level was broken for a couple of sessions on 1/6/2012 to 5/6/2012.
- However, the Stock seems to have taken good support at 19.4 closing basis on 5/6/2012.
- In my opinion, the 18.05 to 19.4 zone should act as a good support zone for the current budding upmove. 18.05, incidentally, is the Dec 2011 low.
- On the upside, the earlier Fibonacci based support zone of 23-25 becomes the resistance zone for this upmove.
- A decisive break above 23 on a closing basis should see the stock test 25. A break above 25 would take the stock up to 27.5 levels which corresponds to the Fibo 61.8% retr line.
- So, my current view on the Stock is bullish; BUY at CMP 21.75 for a target of 23 followed by 25 and then eventually 27.5. Keep a stop loss handy at 18.5 levels, since the macros could deceive us yet again.
TO SEE ALL EARLIER POST ON GMR SEE THIS
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