ICICIdirect recommends buying SKF India in the range of Rs 885-870 for target of Rs 980 with stop loss of Rs 820 on a closing basis.
 
Commenting on the rationale, the stock broker said," The stock is in a secular uptrend forming higher peaks and troughs on all time frames.

The stock concluded a three year consolidation phase at August 2013 low of Rs 432.50 and since then has regained strong upward momentum.

The last seven week’s range bound price action has taken the form of a bullish Flag pattern on the weekly charts. A Flag formation is a bullish continuation pattern, which marks a temporary pause within an uptrend as bulls take a breather before resumption of the preceding up move.

The price action during the current week has seen the stock register a breakout from the Flag pattern and therefore provides fresh entry opportunity.

Following the price breakout we expect the stock to head towards target of 990 being the 100% extension of the previous up move from 626 to 835 as projected from the recent higher bottom of 785."

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