Buy Shriram Transport Finance, target Rs 1720: Ashish Chaturmohta

After a long-term consolidation between 1300 and 750 odd levels, Shriram Transport Financewitnessed a breakout from the pattern to hit a high of Rs 1546 in the month of January.

Then price corrected down to its breakout level of Rs 1300 and seen a bounce back. The price has witnessed a rounding pattern formation over the three months and saw a breakout from the same at the start of this month.

Since then the stock price has been trading in a narrow range between Rs 1620-1550 odd levels to form bullish pole and flag pattern which is a continuation pattern.

The relative strength index (RSI) has given positive crossover with its average suggesting stock is likely to see a breakout on the upside. Thus, the stock can be bought at current level and on dips to Rs 1570 with a stop loss below Rs 1540 for a target of Rs 1720 levels.

Disclaimer: The author is Head Technical and Derivatives, Sanctum Wealth Management. The views and investment tips expressed by investment expert on are his own and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.