Stock and Market Views

Weekly technical calls from brokers
Buy Havells near for target of Rs 830-850  

Trading strategy for 3 Sensex outperformers in August

Pick of the Week: Allied Digital Services 

Weekly technical calls from brokers 

 

Sizzling Stocks

State Bank of Mysore (Rs 1,167.8)

The stock zoomed, hitting its 20 per cent upper circuit last Monday as well as on Tuesday. Thereafter, it recorded a 52-week high of Rs 1,450, and started to decline, but finished the week with 26 per cent gains.

The stock, which had been on a sideways consolidation from May 2009 in the broad range between Rs 575 and Rs 750, broke out in August 2010. However, after encountering resistance around Rs 1,450, the stock declined retracing 38.2 per cent fibonacci retracement of its prior up move and is testing support around Rs 1,500.

A fall below Rs 1,100 in the ensuing weeks will drag the stock further down to Rs 1,000 or Rs 920. On the other hand, a reversal from the current support level will result in the stock moving sideways in the zone between Rs 1,150 and Rs 1,327. Strong move above Rs 1,327 once more will take the stock higher to Rs 1,450 or Rs 1,500 in the medium-term.

Surya Pharmaceutical (Rs 293)

The stock's bullish momentum prolonged and shot up by 28 per cent during the week. Since March 2009 low of Rs 47, the stock has been on a long-term uptrend, steadily forming rising peaks and troughs. Medium-term trend is also up for the stock. On August 16, the stock conclusively penetrated its key resistance of Rs 200 and subsequently began to accelerate. Marking an all-time high of Rs 314 recently, the stock is in a minor correction as the daily and weekly relative strength indices are hovering in the overbought territory.

Inability to move above Rs 310 can accelerate the ongoing correction to its immediate support of Rs 265 or Rs 250. The intermediate-term outlook remains positive as long as the stock trades above Rs 180. — Yoganand D.

TECHNICAL ANALYSIS: Index Outlook - Bulls on the backfoot
Bulls took a breather after weeks of toil to push the Sensex over the 18,500 mark. The benchmark rolled down effortlessly to close 403 points lower, the largest weekly decline in the last three months. Expiry of August derivative contracts ... 

TECHNICAL ANALYSIS: Query Corner: Sesa Goa in corrective phase
Please let me know the outlook for Praj Industries. Should I hold or sell this stock? ..

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TECHNICAL ANALYSIS: Pivotals
The stock tumbled 3.8 per cent last week and is testing our medium-term key support level of Rs 950. Both medium and short-term trend is down for ...

STOCKS: NALCO: Book profits
Investors can consider booking profits in the stock of aluminium producer NALCO. An uncertain outlook for aluminium metal prices, coupled with little visible expansion in aluminium smelter capacity, might leave the company with little scope ...

STOCKS: Adani Enterprises: Buy
Investors with a two-three year horizon can consider fresh exposure to the stock of Adani Enterprises (AEL). The company has made a complete transition from low margin trading to becoming a holding company for the group's promising new ...

STOCKS: APOLLO TYRES: Hold
Shareholders can stay invested in the Apollo Tyres stock with a two-year perspective. At the current market price of Rs 72, the stock trades at about 8.6 times and 7 times its estimated consolidated earnings for FY11 and FY12, respectively. ...

RIGHTS ISSUE: Sadbhav Engineering: Invest
Shareholders of mid-sized infrastructure player, Sadbhav Engineering, can subscribe to the ongoing rights issue made by the company. At Rs 725, the offer is at a massive discount to Rs 1,500, at which the stock trades. Investors will also ...

MUTUAL FUNDS: Sundaram Capex: Invest
Investors willing to take a contrarian choice can consider investing in Sundaram BNP Paribas Capex Opportunities Fund through systematic investment plan based on its performance over a three-year period. As quite a few pure infrastructure ...

 Src: Businessline, Myiris