Divis Lab - waiting for break out !!

Today , on the last day of derivatives expiration of July contracts ,the Nifty revolved around the weekly pivot and also could not go beyond the important resistance level of 4353 indicated yesterday.

Consider crucial support now at 4275 and resistance at 4353-4360 levels.

DIVISLAB is one stock which has remained low key during the past few days and the price chart formations suggest that a break out can be expected any time.



The break out level is at Rs 1440/- and short term traders can enter the stock on break out for a target of near Rs 1600/-. Keep stop loss at 1375 being important support level on intraday charts.

Even the basic and advanced indicators should support the possible break out and a volume pick up should add to the speed of the move.

I hope inflation figures to be announced today post market are 'in line with expectations' though they may be able to give only a temporary impact. The fact that RBI has cut the Repo and CRR recently suggest that it is clearly worried. It has done so, even though they are aware that it may slow down the growth rate - but the RBI governor has to choose the lesser evil and inflation containment is a clear priority.

Happy trading

CA Rajiv D Khatlawala