Technical Check: Havells likely to resume uptrend soon; buy for a target of Rs 325

NEW DELHI: Havells India Ltd witnessed minor decline post moving 76 points upwards from the low of Rs240 and later reversed after visiting its 100-days SMA & 38.20% Fibonacci Retracement level (i.e. placed around Rs285) with "Harami Bullish" formation (i.e. trend reversal pattern), Reliance Securities said in a report.

Positive cross-over in Stochastic (5,3) from oversold zone and improving RSI (14,9) are in favor of recent price action, said the report. The brokerage firm is of the view that the stock will soon resume its uptrend and surpass recent pick.

Thus, for Wednesday's trade, long position can be initiated only in Rs 288-282 for target of Rs325 with a closing based stop loss of Rs 270.