CARE RATING has experienced a breakout of its trend line on the hourly chart, indicating an upward trajectory. The stock established a support base within the range of Rs.1315 to Rs.1340, effectively concluding its short-term downtrend. A rebound from this support level, accompanied by increased trading volume, suggests a robust strength in the stock. Currently, it is trading above significant moving averages, specifically the 20EMA and 50EMA on the daily charts. The Bollinger Band (20, 2, S) configuration on the daily chart has begun to expand slightly, with the stock trading near the upper band, signaling potential volatility on the upside. The RSI (14) on the daily chart is positioned below 64.91, indicating that the stock is not yet in an overbought condition. Additionally, the Parabolic SAR is situated below the price action on the hourly charts, reinforcing the notion that the uptrend is likely to persist in the near term. The DMI+ is trending upward and is currently around 31.57, significantly above the 25 threshold, suggesting that overall strength may lead to sustained buying activity from these levels. Based on this comprehensive analysis, we recommend a buying position.
Hence, we recommend to go long around current level and in dip around Rs.1375 – Rs.1385 with stop loss below Rs.1310 for target Rs.1675.