The stock can be bought at current level and on dips towards Rs 635 with a stop loss below Rs 615 and a target of Rs 720 levels, says Ashish Chaturmohta of Sanctum Wealth Management.
Sundaram Fasteners is in a long-term uptrend forming higher tops and higher bottoms on the daily chart and weekly chart. The stock has seen in a consolidation zone between the levels of Rs 645 and 545 odd levels over the last four months with a positive bias.
The price has been taking support at its 100-day moving average. The Relative Strength Index on the daily chart has given a positive crossover with its average suggesting that the stock is likely to see a breakout on the upside.
Thus, the stock can be bought at current level and on dips towards Rs 635 with a stop loss below Rs 615 and a target of Rs 720 levels.Disclaimer: The author is Head Technical and Derivatives, 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.