We recommend buying the stock at CMP for the target of 475 and keep a stop loss below Rs 405 on a closing basis, says Vinay Rajani of HDFC Securities.
Coromandel International price has reversed the trend from the crucial long-term support of previous tops, registered in 2010, 2011 and 2014. This support is at 350 odd levels.
The stock saw a bullish Hammer candlestick pattern on the monthly charts which indicates a trend reversal. The long-term primary trend is bullish with higher tops and higher bottoms.
Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of 475 and keep a stop loss below Rs 405 on a closing basis.Disclaimer: The author is Technical Analyst, HDFC securities. 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