Technical Outlook & Trading Strategy:-
The price of Kapass witnessed a sharp correction from the highs of Rs 1228 levels as on 13th Apr, 2011 to register a low of Rs 640 levels as on 19th June, 2011.
Since this correction the prices have been taking support between the Rs 645—Rs 640 zone and the prices have formed a triple bottom pattern on the daily charts.
This pattern is a sign of accumulation in the counter and signals that a bottom is in place over the short term period.
The momentum indicators have also come out of the oversold territory and are now giving bullish signals.
We recommend traders to buy 50% at current levels and again on dips to Rs 656--Rs 648 levels with a stop loss placed below Rs 639 levels for upside targets of Rs 710 / Rs 745 levels expected to be achieved over the upcoming 3-5 sessions of trade.
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