Ashish Chaturmohta
Pidilite Industries has formed a short-term double bottom formation on the daily chart over the last one month. The price has given a breakout from the pattern with long bullish candlestick and high volumes indicating buying participation in the stock.
It has also crossed the previous support zone of Rs 1030-1020 which is now acting as a resistance for the stock. The price has given a breakout on the upside from Bollinger Band with the expansion of bands indicating a continuation of the trend in the direction of breakout on the daily chart.
The stock has also closed above the long-term 200-day moving average on the daily chart. Thus, the stock can be bought at current level and on dips towards Rs 1015 with a stop loss below Rs 990 and a target of Rs 1150.
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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