Ashish Chaturmohta Sanctum Wealth Management
Info Edge (India) witnessed a rally from June low of Rs 1126 to September high of Rs 1698. The stock corrected towards Rs 1310 levels in October and again tested the low this month after a bounce back high of Rs 1625 levels.
The stock took support at its 200-day moving average and then bounce back. The fall has retraced 61.8 percent Fibonacci retracement level of the rise from Rs 1126 to Rs 1698 levels. Thus, indicating support zone for the stock where it is forming a double bottom pattern on daily chart.
The stock again tested 200-day moving average twice and then bounced back. Relative strength index has turned up from its average and moved above 50 level.
Thus, the stock can be bought at current levels and on dips towards Rs 1435 with a stop loss below Rs 1385 and a target of Rs 1600-1650 levels.
Disclaimer: The author is Head of Technical and Derivatives at 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.
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