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The stock of SRF has been in a strong uptrend since March last year. However, the bulls faced considerable challenge in October after the stock hit life-time high of ₹2,538. The price started to reverse lower from there and the stock fell to a low of ₹1,973.1 by the end of November. Thereafter, the stock had consolidated sideways by oscillating between ₹2,000 and ₹2,235.
Last week, the scrip broke out of the range, turning the near-term outlook positive. It is likely to appreciate from the current levels and retest the high of ₹2,538. However, before this surge happens an intermediate pull-back to ₹2,235 is possible. Considering this, traders can initiate fresh long positions at current levels and also accumulate on a decline to ₹2,235. Keep the stop-loss at ₹2,145. When the stock rallies past ₹2,430, shift the stop-loss up to ₹2,280. Book profits when the price revisits its previous high of ₹2,538 since there can be a correction from this level.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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