Buy Container Corporation in the range of | 1670–1705 for a target price of | 2070.00 ;; ICICI Gladiator PICK

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Technical view Strategy: Buy Container Corporation in the range of | 1670–1705 for a target price of | 2070.00 with a stop loss below | 1510 on a closing basis The share price of Container Corporation embarked upon a secular uptrend since 2012 and continues to stride northwards in a rising peaks and troughs fashion on all time frames. The recent three weeks corrective dip in price offers a fresh entry opportunity to ride the ongoing uptrend Key technical observations ¾ The stock hit an all-time high of | 1774 in March 2014 and, thereafter, entered a corrective phase over the last three weeks. The share price garnered strong buying support at the key value area of |1520 and the resulting bounce back has seen stock post a faster retracement of the last down leg thus signalling an end of the minor corrective phase resumption of the upward momentum ¾ The confluence of the following technical parameters converging around | 1520 made this a key support area and triggered value buying : • The recent breakout area and November 2014 high of |1520 reversed its role and acted as a support signifying the change of polarity principle • The value of the rising 50 day EMA, which has historically acted as a key support during intermediate corrections was then placed at | 1510 levels • The 50% retracement of the February – March rally (|1298 to |1774) is placed at |1535 levels ¾ Another significant observation on the volume front is that rallies throughout 2014 enjoyed strong investor participation as visible from rising volumes while secondary corrective decline remained low volume affairs highlighting larger participation in the direction of the primary trend. The price breakout above November 2014 high (| 1520) in March 2015 is backed by strong volumes almost five times the 50 weeks average volume of (6 lakh shares per week) indicating strong investor appetite for the stock ¾ Among oscillators, the MACD (E-12/26/9) sustained above its trigger line during the recent corrective decline and has now generated a positive crossover above its 9 period average signalling resumption of upward momentum Conclusion: We expect the stock to embark upon its next up move and head towards | 2070 levels in the medium term being the price parity with the previous up move from | 1200 to | 1774 as projected from the recent higher trough of | 1522

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