Stock of the week - Buy Varun Beverages Ltd For Target Rs. 906 By GEPL Capital
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Observation
* On weekly chart, VBL has been moving in a strong uptrend since March 2020 and forming higher high, higher low formation.
* On daily timeframe we saw breakout from rounding bottoming in April 2022 with higher volumes.
* On weekly chart, Post the breakout we can spot change in the polarity pattern which is followed by strong volumes.
* Prices on weekly timeframe took support from its 13 week EMA, which acted as strong support to prices and 32 week EMA which acted as proxy to trend line.
* RSI indicator on weekly as well as on daily timeframe has sustained above 50 mark, which here is indicating a bullish sign.
* In the previous week the stock made its fresh all time high with a strong momentum.
Inference & Expectations
* Uptrend is supported by the volumes and indicator evidence, this indicates the strength in existing trend.
* Going ahead we expect the stock to move higher towards 1000 level.
* 670 level will act as a major support on the downside.
Buy Varun Beverages Ltd CMP: Rs 770 | Target: Rs 906 (18%)| SL: Rs 670
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