ICICIdirect.com advised, traders can buy Delta Corp around Rs 70-72 with a stoploss below Rs 64.90 for a target of Rs 87 in its November 9, 2012 research report.
“Delta Corp share price witnessed an exponential rise in the second half of the year 2010 rallying from a low of | 32 to hit an all-time high of | 139 levels in a matter of just five months. After a more than three-fold rally in a very short span the stock entered a prolonged corrective phase from late 2010 till recently.”
“Key observation on the price charts is that the stock gradually corrected the 2010 rally by precisely around 80% at the December 2011 low of | 51. Thereafter, the stock has garnered good buying support every time it has re-visited the 80% retracement mark on multiple occasions during 2011- 12. The two distinct lows formed during May and July 2012 resulted in a Double Bottom at the major retracement level and the stock recorded a volume led breakout past the neckline of the said pattern (| 68.50) in late September 2012. At the lows of July and August 2012 the stock re-tested its long term demand line formed by joining the significant lows since 2008. Value buying at the long term support trend line helped the stock eventually register a breakout past the neckline of the double bottom formation and thereby reigniting the bullish momentum in the stock.”
“The price breakout during September 2012 saw the stock record a consistent close above the long term 52 week moving average for the first time since November 2011. The sideways consolidation from mid October 2012 till date has seen the stock consolidating just above the 52 week moving average currently placed at 68 levels, which also coincides with the neckline of the double bottom formation. Post the sideways consolidation, we expect prices to resume their upward journey and head towards the measuring implication of the Double bottom formation, which projects a price target of Rs 87 (depth of the pattern 68.50–50 = 18.5 points added to 68.50),” says ICICIdirect.com research report.
Bodies Corporate holding more than 50% in Indian cos
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To read the full report click on the attachment
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