Buy Dabur India with target of 261

Dabur India Ltd (NSE:DABUR) is showing strength in the daily chart. In the candlestick chart, the chart has formed Morning Doji Star pattern. It is three days pattern, where the first day stock goes down and on the next day there won’t be an significant direction, but on the third day there will be a positive close with reasonable volume.

Dabur had negative close on 25th and indecisive doji pattern on 27th. Decisive positive close on 28th with volume of 2.2 Million shares in National Stock Exchange. The 10 days average volume is currently at 1.3 Million.

The Relative strength indicator (RSI) is also showing the reversal from oversold territory. One can buy Dabur above Yesterday’s close of 244 with target of 261+ by keeping the stop loss around the doji bottom levels.

Dabur India is showing Morning Star Pattern in Candlestick Chart
Dabur India is showing Morning Star Pattern in Candlestick Chart

Dabur India, leading consumer goods manufacturer, reported an increase of 12.64 per cent in consolidated net profit at Rs 318.54 crore for the December quarter on account of growth in its consumer care business. The company had posted a net profit of Rs 282.78 crore during the same period of the previous fiscal.

Dabur touched a 52 week high of Rs. 316.5 on 6 Aug, 2015 and a 52 week low of Rs. 231.3 on 27 Jan, 2016. Last one week high and low of the scrip stood at Rs. 251.4 and Rs. 231.3 respectively.