Godrej Industries Short-term trading buy for 19.6% gain

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Pee Vee
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Godrej Industries Short-term trading buy for 19.6% gain

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Godrej Industries Limited - BUY
CMP: Rs 510; 6-9 Months Target: Rs 610; Stop Loss Rs 462, Upside: 19.6%

“Rising channel breakout”

The stock attempted to breach past the higher end of the trading range over five times in the past four years but failed to do so. However last week, Godrej Industries finally broke out from the rising channel pattern, indicating the beginning of a new bull run. The price outburst is accompanied with credible increase in volumes. Our analysis shows, volumes have surpassed average volumes of past five months, which further accentuates our bullish stance on this stock.

Based on the above evidence, if the breakout unfolds the way it should then we expect a potential target of Rs 610 in 6-9 months. The breakout would stand void if Rs 462 is broken on closing basis.
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