Technical Analysis – Thermax
Thermax (Rs 685)
Thermax was yet another stock that outshone others as investors cheered the company’s joint venture with Babcock and Wilcox for manufacturing super critical boilers.
The stock closed higher in all the sessions to end the week 8 per cent higher. This surge has once again brought the stock to its key intermediate term resistance zone between Rs 700 and Rs 750.
The stock has been struggling to move beyond this zone since early January and it can continue to vacillate in the range between Rs 550 and Rs 750 for few more weeks.
Such a move would however be construed positive from a medium term perspective and investors can buy in declines with stop at Rs 540. Target above Rs 750 is the previous peak at Rs 968.
Fresh purchases should however be avoided on a decline below Rs 540 since that would imply that the stock is heading for Rs 520 or even Rs 450.
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