Buy Container Corp; target of Rs 1500: Aditya Birla Money

“Container Corporation right from it March’09 lows of 606.60 has been trading in well channelised (semi-log) uptrend, where the outside and inside band of the channel has been defined by its respective pivotal highs and pivotal lows. At recent low of Rs 1270 it has found a good bottom formed through the convergence of 21 and 34 Weekly Exponential Moving Averages (WEMA), 23.6% Fibonacci retracement for the previous rally from the lows of 606.60 to the highs of Rs 1425 and the given channel inside band. At such important support zone it has formed multiple weekly Hammer Doji candle. The Hammer pattern signifies a weakening in bearish sentiment at important support zone and bulls coming with vengeance to protect important level and recapture the lost ground.”

“The overall consolidation post highs of Rs 1425 has shaped up as a probable triangle and by definition triangle are continuation pattern suggesting post breakout the next move will imitate previous impulse which happens to be positive in this case. We suggest buying CONCOR above Rs 1340, with a closing Stop-loss of Rs 1270 for a possible target of Rs 1500,” says Aditya Birla Money research report.

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