Buy Berger Paints between Rs 232 and Rs 236. Stoploss at Rs 223 :: HDFC Securities

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Observation: Berger Paints has broken out of the 223-236 trading range in which the stock was trading for the last two weeks. The lower end of this trading range has acted as a resistance in the past indicating the change of polarity principle is in work. Today’s breakout was accompanied with higher than average volumes, indicating that there was significant accumulation. Technical indicators are giving positive signals as the stock trades above the short term (13 day SMA) and medium term (50-day SMA) moving averages. Momentum indicators like the 14-day RSI too are in rising mode and not yet overbought. The 14-day RSI is also above its 9-day EMA, which is a healthy signal for the stock. Given the positive technical set up on both the short term and medium term time frames, we believe the stock has the potential to move higher in the coming days. Our entry levels along with the stop loss and targets are given above.

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http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3010962