Go long on Sujana Towers with a stop loss of 54.40: Devang Visaria

Devang Visaria, Chief Strategist, devangvisaria.com

You have a buy call on Sujana Towers. Which direction do you estimate this stock is taking?

Since November 2009 Sujana Towers has been consolidating in a range between 45 on the downside and 61 on the upside. In the previous week there was a huge spurt in volumes closer to 60 lakh shares whereas on an average the volumes are just 10 to 12 lakhs per week. It is indicative of a breakout on the upside and right now after those high volume moves, we have seen a pullback back to around 56-57 from 52-61 kind of levels. We are looking to again play on the long side with a very small stop loss of just 54.40. On the upside, possibly a first target of 60 as a trading call and then on the medium term basis also looking for targets of 75 levels.