The target price of our last trading strategy (INR 89.5) has been surpassed and we reiterate our recommendation and raise our target price.

The company’s fundamentals are still strong. Sales are up + 17.9% for one year. Analysts from Thomson Reuters consensus have revised largely upward their EPS estimates. The last EPS was at INR 11.1.

Technical patterns are in the green: prices are up for several months. The reversal should continue in the coming trading sessions. The 20-day moving average should help to reach the INR 106 long term pivot point. Moreover, the security crossed its resistance trend line, which is a buy signal.

Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position at the current price. The first target price is the INR 106 resistance. A breakout of this level will be a new bullish signal for higher target price. A stop loss will be fixed under the INR 87.6 short term, threshold that would invalidate this trading strategy.