Bangalore: Seeing the recent growth, India Infoline has recommended buy rating on Divi's Laboratories' stock with a target price of Rs.690.
According to the brokerage firm, Divi's Laboratories has seen a severe correction from a high of Rs.664 in early March 2010 to a low of Rs 615. This was a panic bottom and the stock rallied up to the current levels without a retest of this low. On the daily charts, the price movements appear to have formed a higher bottom formation. The stock has witnessed a steady rise from its newly formed support of Rs 615.
This week on Tuesday, the stock attempted to break out from a three-week high of Rs.664. The bullish formation is confirmed after the stock gave a close above its short-term moving averages.
According to the brokerage firm, Divi's Laboratories has seen a severe correction from a high of Rs.664 in early March 2010 to a low of Rs 615. This was a panic bottom and the stock rallied up to the current levels without a retest of this low. On the daily charts, the price movements appear to have formed a higher bottom formation. The stock has witnessed a steady rise from its newly formed support of Rs 615.
This week on Tuesday, the stock attempted to break out from a three-week high of Rs.664. The bullish formation is confirmed after the stock gave a close above its short-term moving averages.
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