Buy Maharashtra Seamless for target of Rs 438:IIFL

MUMBAI: IIFL has advised traders to buy Maharashtra Seamless for target of Rs 438.

“After making a decent run up from intermediate lows of Rs 325 to Rs 405, the stock has been consolidating in the tight range Rs 364-400 without interrupting its long term uptrend.

Such a consolidation to be viewed as positive signal and paves way for smart upmove ranging from 10-15% from current levels. On a line chart stock has already been holding above its breakout levels of Rs 394 for couple of days and we expect buying momentum to resume hence forth.

Internal structure of symmetrical triangle also suggest Five legs of triangles have been through and resemblence of such triangle to a running triangle based on Elliot Wave principle, next leg of upmove should take prices towards Rs 452.

We advise buying stock above Rs 400 with stoploss of Rs 388 for target of Rs 438 for one week delivery,” the report said .

Note:Trading idea valid for time-period of 1-3 days.