The stock is trading at a discount of 10 percent from this price, which we expect to be taken out in the near future, says Vinay Rajani of HDFC Securities.
Primary trend of Sterlite Technologies has been bullish with higher tops and higher bottoms formation seen on daily charts. The stock recently surpassed its crucial resistance of 365 and broke out from the long consolidation of previous 10-months in October 2018.
The stock has remained resilient in the entire downswing in the mid-cap space during the last 10 months. Quarterly results were impressive which signals positive sentiment.
The all-time high is for the stock is placed at Rs 415 and the stock is trading at a discount of 10 percent from this price, which we expect to be taken out in the near future.Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of Rs 420 and keep a stop loss below Rs 340 on a closing basis.