ICICIdirect recommends buying Exide Industries in the range of Rs 133-136 for target of Rs 165 with stop loss of Rs 122 on a closing basis for 3 months.

Commenting on the rationale, the stock broker said,"Exide has broadly remained in the range of Rs 115-135 in the last two years. In the current positive market scenario, it seems to be recovering finally on the back of strong build-up and is expected to provide good upsides in the days to come. 

The open interest in Exide has increased significantly by 40% in the recent run up. We expect aggressive long positions to have been formed in the stock.

In April, 2014, it had made high of Rs 134. Later, it witnessed profit booking and fell till Rs 115. It recovered from there in the first week of May and has seen good volume pick-up since then.

The delivery picked up on May 19 when it was trading near Rs 130. This level should act as good support on declines.

The stock has breached the falling trend line in force from December 2012 with volumes. It seems it may gear up for good upsides.

Since April 2014, when the stock was trading near Rs 130 only, the open interest in the futures segment has increased substantially by 275%, which points towards continuous leverage addition in the stock.'' 

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