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Grasim Industries Ltd

Observation

* Grasim on long term charts is moving with a higher highs and higher lows formation suggesting the long term bullish trend of the stock is intact.

* In the recent correction, Grasim corrected nearly 16% and took support at 61.8% Fibonacci retracement level (1430- 1893 retracement level) after which the stock has bounced sharply from the supports.

* On weekly charts stock is continuously bouncing from the 20 week SMA support.

* Current week the stock has broken the previous swing highs and formed a Bullish Marubozu Candle.

* On the indicator front the RSI has formed a bullish Hinge near the 50 mark suggesting Bullish momentum in the stock.

Inference & Expectations

* Grasim is moving higher after a correction.

* The technical parameters and the indicators mentioned above, point towards the possibility of increasing bullish momentum in the trend

* We expect this momentum to take the prices towards 1900 (Life High) followed by 2050 (100% retracement from 1430- 1893 levels)

* On the downside the 1720 mark will act as a support zone. If this level is breached on closing basis our bullish view will be negated.

* One can buy Grasim at current levels with a target of 1900 and 2050 with a strict stop loss of 1720 on closing basis.

Grasim Industries Ltd : LTP : 1797.65 Target: ₹2050 Stop Loss : 1720

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