The stock of Max Financial Services was charting a sideways trend since mid-February. It was largely held within the support at ₹940 and the resistance at ₹1,000. On Wednesday, the scrip broke out of ₹1,000, opening the door for further rally. In the near-term, we anticipate the share price of Max Financial Services to appreciate to ₹1,070. But the stock could retrace to ₹1,000 before rallying to ₹1,070. Therefore, participants can buy this stock at the current level of ₹1,016 and accumulate in case the price dips to ₹1,000. Keep a stop-loss at ₹975 at first. Modify this to ₹1,010 when the price hits ₹1,040. Liquidate the longs at ₹1,065. In case the stock opens below ₹1,000 on Thursday, refrain from initiating longs.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
