We advocate traders to buy this stock above Rs 1531 with a price target of Rs 1700 and a stop loss placed below Rs 1428, says Aditya Agarwal of Way2Wealth Brokers.
Looking at the weekly chart, PVR has been correcting in a ‘Downward Sloping Channel’ pattern since the beginning of May 2017. Subsequently, the stock formed strong base near Rs 1100 – 1060 zone and rebound sharply.
As a result, PVR broke the upper band of the channel pattern which led to a breakout. The weekly RSI (14) entered above the 60 level which supports our hypothesis.