Sterlite gives symmetric triangle breakout

Sterlite Technologies surged as much as 4.9 per cent with 3.54 times spurt in volumes. The company is partially-owned by Sterlite Industries which in turn is promoted by Vedanta. The company manufactures optical fibre, telecom cable, power transmission conductors and has been in news recently after brokerage houses estimated its Q4FY18 net profit to go up by 11 per cent and 60.1 per cent Q-O-Q and Y-O-Y respectively. Moreover, the company was also in news on the back of its fund raising plan.

Finally, on Friday, the stock of Sterlite Technologies succeeded in giving a symmetric triangle pattern breakout at 327 levels. The breakout is supported by volume spurt and 14-period RSI trendline breakout at 53.50 and quoting at 55.50, which suggest momentum going ahead. The stock also broke out of its nearly 9 days consolidation. Moreover, the stock has been taking support at 100 days EMA level since forming a lower trendline of a triangle pattern on February 6.  With this, either at the current levels or after a pull back, the stock holds the potential to give 40 to 80 points upside in the near-term, followed by 100-120 points in medium-term.