"The stock can be bought at current level and on dips to Rs 415 with a stop loss below Rs 403 for target of Rs 475 levels," says Ashish Chaturmohta, Head Technical and Derivatives at Sanctum Wealth Management.
Arvind touched a high of Rs 479 in the month of January and then corrected sharply to hit low of Rs 361 levels. Subsequent bounce back faced resistance at Rs 428 and then retested the low of Rs 361 to form a higher low.
The rally in last three weeks has formed bullish double bottom reversal pattern on daily chart. On Monday, the price witnessed a strong price momentum and high volumes to close at breakout level, suggesting the stock is likely to see a breakout on the upside.
The stock has given a breakout from Bollinger bands with the expansion of bands suggesting trend likely to continue in direction of the breakout.
Stochastic has given positive crossover with its average suggesting Arvind is starting fresh uptrend after last week’s narrow consolidation. Thus, the stock can be bought at current level and on dips to Rs 415 with a stop loss below Rs 403 for target of Rs 475 levels.Disclaimer: The author is Head Technical and Derivatives, Sanctum Wealth Management. The views and investment tips expressed by investment expert 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.