The stock of Usha Martin, which was in a downtrend since July, seems to have turned the trend up. It was largely moving in a sideways trend over the last month. However, last week, it surpassed the resistance at ₹345. On Monday, too, the scrip managed to close above this level, indicating good buying interest.
While there is a chance for the stock to see a price decline, possibly to ₹345, we expect it to eventually appreciate to ₹415 in the near-term. So, we suggest buying the stock of Usha Martin at the current level of ₹363 and accumulate if the price dips to ₹345. Place stop-loss at ₹322. When the stock hits ₹385, revise the stop-loss to ₹365. On a rally to ₹400, tighten the stop-loss to ₹385. Exit at ₹415.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)