Buy Orchid Chemical; target of Rs 186-192: IndiaInfoline

IndiaInfoline is bullish on Orchid Chemical and has recommended buy rating on the stock with a target of Rs 186-192, in its November 26, 2009 report.

"On the daily chart, Orchid Chemical has broken out from a Ascending Triangle pattern. A breakout from the pattern indicates upside in the coming sessions. The stock price was consolidating within the triangle in the range from the first week of November. On Wednesday, the stock closed above the critical resistance zone of Rs185-186 and well above its short-term moving averages. The daily RSI is in buy mode. Our argument is further validated following an expansion of volumes, confirming the breakout. We recommend traders to buy the stock in the range of Rs186-192 for a target of Rs205. It is advised to maintain a stop loss of Rs 182 on all the long positions," says IndiaInfoline research report.

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