Edelweiss - BEL - Positional Call

The stock has crossed the wave 3 (demonstrated on the above chart) and has entered fifth wave in the impulse, which has a target in the range of 1975 - 2050 levels. In the recent past the stock has consolidated around 1700-1770 range and is now breaking out of the same. On the weekly chart the stock is breaking out of a cup and handle formation confirming our bullish outlook. The stock has been accumulated well in the F&O segment as reflected by a nearly 27% jump in average Open interest in the futures segment from the third week of April. We believe that the stock has the potential to test the aforementioned price levels and recommend to initiate a long position with a stop placed at 1717.