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Observation

* LINDEINDA on long term charts can be seen forming a higher high higher low pattern, indicating that the long term trend of the stock remains strongly bullish.

* The prices had been moving in a range for 13 weeks (2709-2258) after testing the low of 2258 and after that it gave Triangle pattern breakout couple of week back.

* In the week that passed by the prices moved up and sustained above its previous month’s high (2655), this was backed by good volume buildup indicating participation in the up move.

* The Bollinger bands plotted on the weekly time frame can be seen expanding as the prices move higher, indicating expanding volatility on the positive side as the prices move out of a consolidation range.

* On the indicator front the RSI has formed a bullish hinge and is currently moving higher towards the overbought level, indicating increasing bullish momentum in the prices.

Inference & Expectations

* LINDEINDA is sustaining above the 20 Week SMA since June 2020 with slight whipsaws.

* 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 2945 (Life High) followed by 3373 (78.6% extension level of the rise from 1526-2945 projected from 2258)

* On the downside the 2550 -2542 (Weekly low and the 20 Week SMA) mark will act as a support zone. If this level is breached on closing basis our bullish view will be negated.

* One can buy LINDEINDIA at current levels with a target of 2945 and 3373 with a strict stop loss of 2542 on closing basis

Linde India Ltd : LTP : 2774.35 Target: ₹3373 Stop Loss : 2542

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