Stock Compendium

MRF - Could Enter in New Bull Run

2012-02-11T13:38:00.003+05:30

MRF (Cmp 9281) Could enter in new bull run with target of 11000 - 13641 - 21191 deep stop loss would be 7200

dasdfsdgfsdgsdfgsdfg

2012-02-11T13:34:00.000+05:30

Reliance - Negative Divergence

2012-02-08T09:56:00.002+05:30

Reliance (Cmp 859) Negative Divergence. 866-894 Area to short for target of 812-792-772.Stop loss 910

Arvind Mills - Sell

2012-02-02T21:33:00.001+05:30

Negative Divergence in Arvind Mills Sell with a stop loss of 101

BF Utilities - Kalyani Group Company

2012-02-01T17:22:00.002+05:30

BF Utilities (Cmp 399.80) Buy for target of 452.50 stop loss 380

Reliance - Before Results

2012-01-20T17:11:00.002+05:30

Reliance Indus ( Cmp 792) If Buy Back price price would be above 840 then it would be good for RIL
If Buy back price comes Below 750 would be negative
Upside is capped till 833 & 850

Gitanjali Gems - Caution

2012-01-10T15:13:00.002+05:30

Gitanjali gems Cmp 308 below 300 could see 252- 211 sl 321

Happy New Year

2011-12-31T18:02:00.001+05:30

Arvind Mills Uptrend under Threat

2011-12-28T22:20:00.003+05:30

Arvind Mills (Cmp 67) Use Bounce of 80-88 levels to exit possibility of HnS formation Below 62 possiBle tgt of 40 and 16.5 in long term

DLF

2011-12-16T18:28:00.003+05:30

DLF (Cmp 194) Close below 172 will lead to 124 and if 120 breaks DLF could see 27 Rs
262 above view changes

Silver - Sell

2011-12-14T17:18:00.003+05:30

Silver (Cmp 30.09$) sell below 30 $ for 26.6$ and 20$ sl 32$

Dish TV - Sell

2011-12-14T15:15:00.001+05:30

Dish TV ( Cmp 62.5) Sell below 59 for target of 53 & 43.25 stop 63

Areva T & D - Sell

2011-12-14T13:53:00.002+05:30

Areva T & D ( Cmp 153) 228 was crucial support which was broken long back
167 - 130 major levels if breaks 62 will be next major support.
If bounces 167-190 will act as resistance

Monnet Ispat - Waiting for Direction

2011-12-10T15:33:00.004+05:30

Monnet Ispat (Cmp 373) Resistance at 382 & 446
Above 446 it will show real strength
Below 382 possible support at 318 and could become very weak below 318

Max Hospital - Sell

2011-12-10T15:20:00.002+05:30

Max Hospital ( Cmp 167) Head & Shoulder pattern having target of 128
View negate if it trades above 178

CESC - Sell

2011-12-10T14:13:00.004+05:30

CESC (Cmp 230) As long as it stay below 278 could target towards 167

National Aluminum

2011-12-10T14:01:00.003+05:30

National Aluminum (Cmp 51 ) Trendline support at 32.5 accumulate in between 40 & 33

Apollo Hospital

2011-12-08T16:50:00.002+05:30

Apollo Hospital ( Cmp 667 ) No such specific pattern
Use 597 as SL for Long
639-690-838 Resistance levels

IOC -Sell

2011-12-06T13:27:00.003+05:30

IOC (Cmp 268) Weekly chart. Head and Sholder Breakdown Target 135
Above 315 if trades view changes

Ingersol Rand - Sell

2011-12-06T13:22:00.003+05:30

Ingersol Rand (Cmp 419) Long term investors should Exit at current levels
Trendline breakdown. Target 203

Mahindra & Mahindra

2011-11-26T11:51:00.002+05:30

Mahindra & Mahindra (Cmp 706) Buy abv 730 tgt 765 sl 702
Sell below 695 target 660 - 600 stop loss 720

Larson & Toubro

2011-11-26T11:44:00.006+05:30

LT (Cmp 1265) Head and Sholder breakdown at 1540 target 770

In between support comes at 1189-1100
Bounce target at 1320-1340-1385-1402
1000 below sharp sell off for 770 or 555

JSW Steel Buy

2011-11-04T10:34:00.004+05:30

JSW Steel (Cmp 690) Buy abv 685 for target price 747-810 sl 633

APIL- Alstom Power India Ltd Sell ??

2011-11-03T15:45:00.004+05:30

APIL (Cmp 523) Head & Sholder pattern breakdown below 485 target 195

PFC - Buy

2011-11-02T11:32:00.000+05:30

PFC ( Cmp 157) Buy abv 156 for 175 sl 150

Raymond - The Complete Man

2011-11-01T11:48:00.003+05:30

Raymond (Cmp 389) Buy abv 396 for 432-456 sl 374

Hindustan Unilever - Buy

2011-11-01T11:15:00.003+05:30

Hind Unilever Buy for target of 430 sl 340 (Monthly Chart)

India Glycol - Quazi Crude

2011-11-01T09:50:00.003+05:30

India Glycol (Cmp 141) Buy above 144 for 157-170 sl 137

Lakshmi Electric

2011-10-20T14:48:00.004+05:30

Lakshmi Electric (Cmp 269) Buy abv 277 for 335 - 394 stop loss 265

Bombay Dyeing Wadia Group

2011-10-20T10:10:00.001+05:30

Bombay Dyeing (Cmp 401) Buy for target of 466 & 520 stop loss 377

Raymond - The Complete Man

2011-10-20T09:50:00.002+05:30

Raymond (Cmp 355) Buy Above 355 for 374 stop loss 349

LT - Exit on every rise

2011-10-17T13:59:00.004+05:30

LT (Cmp 1407) Ever since it had broken 1580 it will continue to see selling pressure 1385-1190 are support zone.
Could also fill gap it had left in 2009 Gap up opening at Rs 1000/-
My call is exit on every bounce if come

Buy BOC

2011-10-14T18:41:00.002+05:30

BOC(Cmp 315) Buy abv 317 for 335-358 stop loss 298

Parsavnath - Reason for Strength

2011-10-14T18:17:00.002+05:30

Parsavnath ( Cmp 71 ) 74 Should act as strong resistance.
Abv 75 can 87-104-123 .Strong Support at 55

Infosys - Results Cheers

2011-10-12T09:54:00.002+05:30

Infosys (Cmp 2505) 2580 abv could retest 2890 stop loss 2490

ACC - Cementaing Gains

2011-10-11T17:04:00.001+05:30

ACC (Cmp 1137) 1155 abv 1200-1255 opens stop loss 1120

DLF Bearish Bat- Sell

2011-10-11T13:44:00.002+05:30

DLF (Cmp 228) Bearish Bat Pattern Sell Target 210-200-192

Binani Indus - Bullish Gartley

2011-10-11T10:32:00.001+05:30

Binani Indus ( Cmp 129) Bullish Gartley Pattern on Daily charts

Jubilant Foods - Domino Pizza

2011-10-07T17:29:00.003+05:30

Jubilant Foods ( Cmp 711) - 684 below 523 major support
For Short term raders as long as it trades below 785 stock is weak

Crompton Greaves

2011-10-07T15:55:00.004+05:30

Crompton Greaves (Cmp 147) Continue to trade below 168.
107 could possible support area.

Reliance Indus

2011-10-07T15:05:00.003+05:30

Reliance Indus (Cmp 800) Could bounce till 833.
772-800-833 key trading levels.
Below 772 major support level would be 700-640-600.

Aegis Chem

2011-10-07T14:53:00.002+05:30

Aegis Chem (Cmp 180) Near Crucial Level of 177.Below 177 bear grip could tighten
120 & 96 next support levels

Adani Power - Weak

2011-10-07T14:48:00.002+05:30

Adani Power (Cmp 80.3) Weak as long as it stay below 91
74 Rs and 55 Rs would be key support levels

Adani Enterprises

2011-10-07T14:45:00.003+05:30

Adani Enterprises (Cmp 470) Below 532 can see 453. 450 below 374 would be next support.
500-532 would be key resistance.

ABB

2011-10-07T14:25:00.004+05:30

ABB( Cmp 670) Could bounce to 736 if 655 holds.
If breaks 655 next support 588.

Wipro - Anything wrong ?

2011-10-07T12:21:00.002+05:30

Wipro (Cmp 328) Triple top & breakdown of trendline at 426, breaking retracement level of 355 and facing resistance.
Finding support at 309.Charts showing weakness once 309 breaks and could see level of 264.
Strength only if trade above 356

Wheels India - Buy

2011-10-07T12:01:00.003+05:30

Wheels India (Cmp 232) Use decline to buy.
220-265 is trading range.
Promoter Holding more then 85%
Strong Fundamentals

Walchandnagar

2011-10-07T11:28:00.004+05:30

Walchandnagar(Cmp 82.5) Key Support Level 66

Voltas - India Ka AC

2011-10-07T11:11:00.003+05:30

Voltas (Cmp 102.55) Broken Key support level of 119. If fails to cross 120-127could see support at 83-67
Resistance at 127-137-147

Venky India-Avoid

2011-10-07T10:43:00.002+05:30

Venky India (Cmp 382 ) Avoid likely to consolidate around 223-200-168.
Resistance at 420-483

Silver 34 Year Price Chart

2011-08-26T10:22:00.002+05:30

Twin tower ??

33$-44$ /Oz Would be range to decide the trend

BSE Sensex - Still Bullish view

2011-08-22T23:31:00.001+05:30

Harmonic trading pattern still giving bullish view about sensex.
Bullish Crab and Bullish AB=CD pattern formation on charts

Monsanto To Consider Bonus Issue

2011-08-10T23:17:00.001+05:30

Monsanto India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on August 13, 2011, to consider and announce recommendation of issue of bonus shares and consequent increase of authorized share capital and alteration of capital clauses in the Memorandum and Articles of Association of the Company for approval of the members.
Current close 1877 today was up 16%
Link

BSE Sensex - Bullish View

2011-08-04T22:17:00.004+05:30

BSE Sensex ( Cmp 17693) Bullish Bat & Bullish AB=CD Pattern on chart
Have power to Buy and Hold ? BUY for 18500 & 18950

Asian Hotel North - Value Buy

2011-07-25T22:06:00.000+05:30

Jatia Group's Asian Hotels North is known for its premium hotels brand Hyatt Regency. It operates one Hyatt Regency hotel in Delhi, where it is planning to add 35 more rooms. The company is also erecting a new tower with a total built up area of around 1.66 lakh square feet which marks its foray into 'service apartments'. These will become available in FY12.

With these additions, the company's room capacity will increase by 60%. The company joined hands with an overseas hospitality consultant to invest around Rs 400 crore in the company through a preferential allotment in December 2010. These funds would be used for capacity expansion. The scrip is trading at a price to earnings multiple of 14.5 times which is reasonable considering a P/E of 16 for its peer Taj GVK Hotels. Besides this, a history of consistent dividend payouts and low debt makes the company a better investment bet in the mid-size hotels segment.

Source: ET

Buy HCC

2011-07-19T23:39:00.002+05:30

HCC (Cmp 34.5 ) Buy with a stop loss of for target of 39.5 stop loss 33
Medium term buy for target of 50 and 73 sl 28 duration 6-8 months

Buy Piramal Health

2011-07-19T19:52:00.002+05:30

Piramal Health( Cmp 405 ) Buy with a stop loss of 395 for target price of 431 - 455
P.S - Its Cash rich company could be good long term bet too.

Buy Jet Airways

2011-07-18T22:30:00.003+05:30

Jet Airways( Cmp 505) Buy with a stop loss of 489 for target 590

Buy DLF

2011-07-12T22:31:00.003+05:30

DLF (Cmp 221) - Bullish AB=CD and Bullish Bat on weekly charts.Buy with Deep sl of 185 tgt could be 276 (time frame 120 days ) and 400 (time frame 300 days)
Weekly chart

BSE Sensex - Near Resistance

2011-07-02T22:23:00.002+05:30

BSE Sensex (Cmp 18762) Resistance near 19100 and 19150.
Support 18560 - 18265

Bata - Upside left, Hold

2011-06-29T23:10:00.002+05:30

Bata India (cmp 586 ) Hold and can buy on decline. Target price is 733, could be quick one

BSE Sensex- Sell on rise stop loss 17970

2011-06-20T22:09:00.003+05:30

Bse Sensex (Cmp 17506) Sell on rise with a stop loss of 17970 for 17300
If breaks 17300 possibility of 16200-16100 which would be target of HnS as shown in blue marks on chart

Grauer & Weil - Buy

2011-06-15T23:52:00.003+05:30

Grauer & Weil (Cmp 74) Buy abv 76.5 for 82-90 sl 72
(Listed in BSE only)

Reliance

2011-06-15T23:37:00.001+05:30

Reliance( Cmp 900) if stays below 900 for 3 days could get next support at 860

RCB

2011-06-15T08:11:00.001+05:30

Raymond
Century Textile
Bombay Dyeing

RCB will be on focus

Buy IGL

2011-06-13T23:39:00.002+05:30

IGL(Cmp 352) Accumulate for 431 stop loss 305

Kalindee Rail - Buy

2011-06-13T22:52:00.003+05:30

Kalindee Rail (cmp 107) Buy for 117 - 132-147 stop loss 90

Apollo Tyre - Buy

2011-06-12T21:55:00.001+05:30

Apollo Tyre (Cmp 72) Buy with a stop loss of 68 for 82.25

Buy Raymond

2011-06-08T22:33:00.002+05:30

Raymond (Cmp 381) Buy with a stop loss of 370 for 432

Quoted

2011-05-29T12:20:00.000+05:30

Understand that most problems are a good sign.
Problems indicate that progress is being made, wheels are turning, you are moving toward your goals.
Beware when you have no problems.
Then you've really got a problem.

Problems are like landmarks of progress - Scott Alexander

Positive Divergence in Sensex

2011-05-20T08:15:00.001+05:30

BSE ( Cmp 18141) showing positive divergence 18270-18325 -18501 resistances

Buy PFC, CESC and Chola Inv

2011-05-19T22:18:00.005+05:30

PFC ( Cmp 215 ) Buy with a stop loss of 211 for 234-246

CESC (Cmp 275 ) Buy with stop loss of 263 for Target 303

Chola Invest( Cmp 157 ) Buy with stop loss of 140 for target of 196

Sell Hind Unilever, Dabur & Colgate

2011-05-19T22:11:00.005+05:30

Hind Uni Lever (Cmp 309) sell with a stop loss of 312 for target 290

Dabur ( Cmp 103.55) Sell with a stop loss of 107 for 94.5

Colgate(Cmp 898) sell with a stop loss of 940 for 850-831

SAIL

2011-05-17T18:55:00.004+05:30

SAIL (Cmp 145 ) could bounce from 140 to 155. If 140 breaks it could close gap of 129.8

Tata Motors

2011-05-17T18:44:00.001+05:30

Tata Motor ( Cmp 1189) Sell below 1155 for 1100-1038 stop loss 1210

SBI - Results impact

2011-05-17T18:39:00.002+05:30

SBI - Cmp 2413 Broken crucial support of 2475 , heading for 2203 stop loss 2520

ONGC

2011-05-17T18:05:00.002+05:30

Ongc ( Cmp 277) Unable to close abv 200 dma i.e 311 if fails to hold 265 then could test 248-229.Use Bounce if comes at 288-290 to initiate shorts or exit

Reliance Ind

2011-05-17T18:00:00.002+05:30

Reliance Ind (Cmp 920) Could bonce from 910-869 target will be 974-1000-1016

CMC

2011-05-15T23:21:00.003+05:30

CMC (Cmp 2719) If trades above 2750 could reach 2980-3273 stop loss 2560

Godrej Indus -Buy

2011-05-12T22:36:00.000+05:30

Godrej Indus (Cmp 192) buy with stop loss of 187 for for target price 207

Titan Industries

2011-05-11T22:23:00.000+05:30

Titan (Cmp 3944) For short term traders uptrend is intact as long as it stay above 3740.
4042-4170 immediate resistance above it can even go 4590 -5036

If 3740 breaks 3440-3000-2500 are major levels.

Its very difficult to predict entry level better to buy and Keep strict stop in it

BInani Indus - Visitors Request

2011-05-06T09:45:00.009+05:30

Daily Chart 183 stop loss closing basis 196-214-260 are upside levels

Weekly chart 173 crucial level

Monthly stop loss 173

Buy Raymond

2011-05-06T09:09:00.001+05:30

Raymond (Cmp337) Buy with a stop loss of 322 for target price of 353 - 373.

JSW Energy - Hit by Raw Material and Debt

2011-05-05T23:18:00.002+05:30

JSW Energy ( Cmp 69.95) if continue to trade below 78 can go even 41 Rs
78 abv can go upto 90

Positive Divergence in Infosys

2011-05-05T20:03:00.002+05:30

Positive Divergence in Infosys though the trend is down

SMLISUZU- Swaraj Mazada Buy

2011-05-02T23:18:00.002+05:30

Buy Swaraj Mazda Nse code SMLISUZU ( Cmp 356) for target price of 407-435
stop loss 340

Infosys - Post Murthy sell ??

2011-05-01T21:19:00.004+05:30

http://stockcarrel.blogspot.com/2011/04/infosys-results-impact.html

Head and Shoulder breakdown stop loss 3000 tgt 2570

Century Enka - Buy

2011-05-01T20:58:00.003+05:30

Century Enka (Cmp 215) Buy above 222 for 242 - 263 stop loss 202

ONGC - Exit

2011-04-28T23:52:00.003+05:30

Ongc (Cmp 317) Can book profits near 327 and wait for 300 levels to reenter.

Uflex

2011-04-28T23:43:00.001+05:30

Uflex (Cmp 218 ) Hold with sl of 195 for 245

Kama Holding - SRF Holding Co

2011-04-28T19:54:00.002+05:30

Kama Holding ( Cmp 573) Holding co of SRF ltd if close above 510 on weekly closing basis could target 710 stop loss 490

Oil India - Strong Buy

2011-04-23T15:52:00.004+05:30

Oil India (Cmp 1341) Strong Buy Above 1348 for target of 1612-1728 stop loss 1280

Buy SBI - Banker to every Indian

2011-04-16T23:04:00.003+05:30

SBI (Cmp 2803) Buy for 2991-3115 stop loss 2755 closing basis.
Deep Stop loss 2730

Buy Satyam Computers - Good Days Ahead ??

2011-04-16T22:49:00.003+05:30

Satyam Computers (Cmp 77.5) Above 78.20 - 80.90 Satyam could target 84 and 91 stop loss 72

Tata Motors - 1231 Crucial

2011-04-16T22:38:00.002+05:30

Tata Motors (Cmp 1235) Monthly charts shows if April close below 1231 could target 1134-1118-993

Long trades should be taken care of 1231 on monthly basis.
If 1231 saved then Tata Motors could target 1534 in coming months.

Infosys - Results Impact

2011-04-16T21:57:00.004+05:30

Infosys (Cmp 2989) - if breaks 2967 then 2867 -2813 could help else 2390 could be expected

3059 could act as stiff resistance abv which 3136-3162

Distribution started since January 2011, Macd -ive on monthy charts, 200 DMA 3041 broken says AVOID

Extensive launch of new products in 6-months: CCL Products

2011-04-13T19:37:00.002+05:30

In an exclusive interview with CNBC-TV18’s Ekta Batra and Reema Tendulkar, C Srishant executive director of CCL Products says that company has seen positive response to the soft lauch of new retail products in Hyderabad. “We have launched three products in the local market and all of them have received a good response,” he says.

Confirming the extensive launch of the products, he says, “We are talking to major retail chains all over India, and apart from them, we are looking at specific states — Andhra Pradesh, Tamil Nadu and Karnataka to place our products on the shelf. We are going to do it after about six months,” he adds.

He also says that the product will be pushed on to the markets without a spend on advertising and, “the product will be priced lower that competitors – Nestle and HUl,” and hence, he says, “our margins will be much higher than what we are getting for our exports.”

Below is a verbatim transcript of C Srishant’s interview with CNBC-TV18. Also watch the accompanying video.

Q: You did a soft launch of retail products in Hyderabad in January. What is the kind of response? When do you think you all will be geared to hit the market in a big way?

A: We received a really good response for products. We have launched three products and all of them have received a good response in the local market over here. As far as a hard launch is concerned, we are probably going to do it after about six months or so, once we get proper feedback from the market. We can access the volumes that we are looking at and accordingly take it forward.

Q: Can you give us an update on where exactly would you plan to launch the products? Which other markets are you possibly looking at launching, in terms of a soft launch in the next six to eight months?

A: Right now, we have already launched it in certain select supermarkets within Hyderabad. We are talking to a couple of major retail chains all over India. Apart from these retail chains, we are looking at specific states — Andhra Pradesh, Tamil Nadu and Karnataka where we are contacting certain distributors and placing our products on the shelf. We want to see the response from these different markets since each region the coffee consumption, the coffee taste profile is different, so our idea was to customize it according to that particular region.

Q: Who will be key competitors within this market and what sort of marketing expenditure could we see, in terms of an investment going forward, once you do launch on a larger-scale?

A: As of now, the only competitor in the pure coffee market segment is Nestle and in the chicory coffee mix segment it is HLL with the brand Bru. We are launching both pure coffee equivalent as well as the Chicory coffee product. Additionally, we will be the first ones in the Indian market to launch a third product which is a free fat coffee.

As far as the marketing expenditure is concerned, for the first one year we will just place the product of the shelf and sell to supermarkets without advertising. Subsequently, depending on the kind of response we will finalize on the strategy on how to spend for the advertising.

Q: Would your margins be a lot higher, when you do price it according to what your competitors are giving you?

A: Definitely, in fact we have strategized to place our products at a lower price than our competitors. Since, we don’t have any initial advertising expenditure; our margins will be much higher than what we are getting for our exports.

CNBC Link

CCL Produtcs - Coffee and FMCG

2011-04-10T14:55:00.005+05:30

CCL Products ( Cmp 222) fallen from the high of 535 made in 2006 , 235 is 61.8% retracement of the high. Its trying to close above 235 if it able to close above 235 could target 292 and 350.Stop loss 210
Recently the company have started marketing coffee products in few states.

for details visit CCL Produtcs

Raymond Monsanto SRF and ACE

2011-04-10T14:07:00.008+05:30

Raymond (Rs 367.5): Raymond was moving at a sedate pace, in the band between Rs 180 and Rs 270, till August this year. But the stock suddenly spiked higher this month to record an increase of Rs 185 or 81 per cent in just nine sessions. Immediate resistance for the stock is at Rs 416. This is a key medium- and long-term resistance since it occurs at 61.8 per cent retracement of the decline from May 2006 peak.

Investors with short- to medium-term perspective can divest some of their holdings on a failure to move beyond this resistance. Stop-loss for investors with medium-term horizon can be at Rs 280 while long-term investors can hold the stock with stop at Rs 200.

Long-term targets on a weekly close above Rs 416 are at Rs 480 and Rs 625.

Monsanto India (Rs 1,836): If we consider the long-term chart of Monsanto India, the stock is straggling along in a trading band between Rs 1,100 and Rs 2,500 since October 2003. Upper target for the long-term will stay in the zone between Rs 2,200 and Rs 2,500. It is hard to envisage a break beyond this zone just yet. But if the stock does so, next target would be Rs 2,900.

Investors can hold the stock with the stop at Rs 1,400. Medium-term range for the stock is likely to be between Rs 1,500 and Rs 2,000. Short-term investors can buy close to the lower boundary and sell near the upper.

Can you please clarify whether the stop-loss levels recommended in your column for medium-term refer to daily closing or weekly closing basis? S. Uma

The stop-loss recommended for medium- and long-term investors is on a weekly closing basis. This is because stocks often tend to breach the stop-loss on a particular day but they tend to move back below the stop in a day or two. Such moves are called false break-outs. Adhering to stops on a daily basis for medium-term holdings will result in premature exit from a position.

It is also recommended to have a filter of three sessions for medium-term positions. That is, the stock should continue to close below a stop for three sessions before it is assumed as violated. This will take care of instances when stop-losses are breached on Friday or close to the weekend. This will also prevent a wrong closing out of positions due to whip-saw movements in stock prices.

Business Line

SRF (Rs 216.7): The long-term decline that commenced from the July 2006 peak of Rs 373 came to an end in February 2009 at Rs 62.

A strong fight-back was witnessed since this low and the stock has retraced half of the down-move recorded from 2006 when it made the peak of Rs 220 in October last year. However, the resistance around Rs 220 is proving to be too strong to breach and the stock has made three unsuccessful attempts to do so over the last seven months.

That said the reversals from this peak have been quite shallow resulting in a sideways move between Rs 170 and Rs 220 in the aforementioned period.

Investors with medium-term investment horizon can hold the stock with stop at Rs 168. It can attempt to move to Rs 258 over this period.

The long-term trend will however turn positive only on a strong weekly close above Rs 258, subsequently paving the way for a rally to the stock's former peak at Rs 373. Long-term investors can hold the stock as long as it trades above Rs 150.

Action Construction Equipment (Rs 50.2): Action Construction Equipment was

one of the stocks that had a stellar run in the last quarter of 2007 only to be decimated in the crash that followed. The recovery that ensued from the first quarter of last year has not yet managed to take the stock above the key intermediate term trend deciding level of Rs 57.

The stock needs to record at least two weekly closes above this level to signal that it is on the road to a sustainable recovery. Else it can decline to Rs 27 or even below. A sideways move between Rs 27 and Rs 60 then becomes a strong likelihood for the medium-term.

A close above Rs 57 can take the stock higher to Rs 71 or Rs 86 over the long-term. It is hard to envisage a move beyond Rs 86 in the foreseeable future and investors can divest part of their holding on a failure to move beyond this level.

Business Line

SRF (Rs 344.3): SRF faces key long-term resistance at Rs 375. Since the stock is reversing lower after moving close to this zone, the correction can now pull the stock down to Rs 330 or Rs 310. Investors with short- to medium-term perspective can cash out at this level since the stock is likely to struggle to move above Rs 375 in the ensuing months.

Investors with long-term perspective can hold with stop at Rs 300. Next downward target is Rs 270. Strong move above Rs 375 is required to take the stock to its record peak of Rs 444.

Monsanto India (1,897.2): Monsanto India is also reversing downward from its key long-term resistance at Rs 1,975. This decline can pull the stock to Rs 1,800 or Rs 1,700 over the ensuing weeks. Investors with short-term perspective can book some profit at current level and hold the rest with stop at Rs 1,800. The stock will however find it hard to move above Rs 1,975 in the upcoming months. A broad side-ways move between Rs 1,700 and Rs 2,000 appears likely over the medium-term.

Business Line

I have invested in Monsanto India at Rs 1,450 with long term perspective. The stock has been falling since January. What would be the technical stop loss if you suggest a ‘hold’? Does the gap left on daily charts in June 2008 need to be filled? Sandeep Dhawan

Monsanto India (Rs 1,488.1): Monsanto India has been moving in a broad range between Rs 1,500 and 2,500 since 2004. This stock is currently poised close to the lower end of its long-term range. The stock is certainly a ‘hold’ at this juncture. The stop loss level for long-term investors ought to be at Rs 1,100. Those wishing to acquire this stock can do so in the band between Rs 1,100 and Rs 1,400. A rally towards Rs 2,200 is likely over the next couple of years. Medium-term resistances for the stock would be at Rs 1,600 and then Rs 1,750.

Though we are positive regarding the long-term prospects of Monsanto, it would not do to wait for the gap in the chart formed in June 2008 to be filled anytime soon. The gap in question is a breakaway gap that followed a sideways movement between Rs 1,850 and Rs 2,000. Breakaway gaps occur at major reversal points and are not always filled. Secondly, the gap in June along with the gap in the daily chart in May formed an island cluster reversal pattern. This pattern too implies a significant turnaround that takes a while to reverse.

Business Line

I would like to know the importance of trading volume in the context of technical analysis. — Sandeep Dhawan

Trading volume has relevance while studying chart patterns and arriving at investment decision based on technical analysis. Typically, a move in price that is accompanied by a pick-up in trading volume would be considered as a healthy sign. Investment positions may be considered with a high degree of conviction in such a scenario, as it indicates that there is growing market interest towards the stock. This theory is valid for both upward and downward moves.

Typically, ahead of a sharp move, price tends to congest in a narrow trading zone while the daily trading volume tends to swell. As the buying pressure builds up, prices tend to explode in the direction of the breakout. Similarly, after a prolonged upward or downward move, the momentum behind the earlier move would wane. Trading volumes would also subside. Prices would get into a consolidation mode and trading volumes would gradually pick-up, resulting in the reversal of the earlier trend. Identifying such trend reversals early would be a key aspect to success at market place.

Business Line

Binani Indus - Buy

2011-04-06T22:58:00.004+05:30

Binani Industries (Cmp 206) Buy for target of 252 with a stop loss 198