• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

We recommend a buy in Cadila Healthcare at current price levels. From the weekly chart of Cadila Healthcare, we see that the stock has been moving sideways in the broad range between Rs 300 and Rs 400 since August 2006. The stock tested the upper boundary of this range in June and has been declining since then. This decline was arrested at Rs 300 in late August and the stock is currently hovering at the lower boundary of this band. The nearest key support for the stock is between Rs 290-300 and the subsequent support is at Rs 265. We notice a positive divergence in the daily MACD (moving average convergence divergence) oscillator, which is a momentum indicator. The medium-term down trend line positioned at Rs 300 is also expected to lend support to the stock. Short-term investors can buy the stock with a stop-loss at Rs 290. We expect the stock to move up to the resistance zone of Rs 330 and Rs 340 in the short-term.

More Stories on : Technical Analysis | Recommendation | Pharmaceuticals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bonus announcement: Delay hits paddy buying

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line