IPCL: Time to tread cautiously

It is time to go slow on the IPCL counter. The scrip could move down to the level of Rs 93, where it has a chance of finding support. On the other hand, the limit on the upside has been seen at Rs 123 now and at Rs 126 earlier.Eventhough the scrip formed a saucer pattern, the width was, too, long and in any case it met with a resistance at Rs 123.

With this picture, it makes sense to book profit, fully or partly and re-enter. Allow the current weakness to run its course, or convert itself into a position of strength.

The stochastic indicator does point to some more scope for a move down. But the crucial level will be Rs 93, where one can hope for support. But whether that support holds or breaks down will be seen only then. If the support fails the price fall could accelerate. Get out and collect your profit seems to be a simpleton8217;s logic!