Varun Industries is in long term uptrend stock and its bull market rally from 120 to 240 was quiet notiecable and fast.
Stock consolidated after making a 100% move and now is consolidating in the range of 216 and 247. Till the stock trade in the range of 216-247 trade this range.
Once 247 breaks Tgt 254,264 and 282
Tata Steel is considered as herald for Nifty to rally and stock is lagging around its 50 DMA @625 and forming a kind of swing resistance around @626 levels. So its a lethal combination of 50 SMA and swing high of 626.As of today stock is range bound trading between 601 and 626.
RSI Positive divergence is noticeable on Daily Chart
Buy above 626 Tgt 629,635 and 645
As seen in Daily chart above Stock is forming Higher Lows and Higher Highs for past few trading sessions.
50 DMA@3032 is major resistance now and have been breached today.
MACD is on verge of positive cross over and RSI is showing positive divergence.
If Nifty needs to move up furthur Infy will play a crucial role as not much help is coming from Reliance.
Buy above 3032 Tgt 3082,3123 and 3177