• 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 Valecha Engineering at the current price. We note from the weekly chart that this stock had declined from Rs 273 (life high) to a low of Rs 83 in short span of four months between March and July 2006. It has been in a gradual up trend, recording higher peaks and troughs since this July 2006 low. This rally is pausing after the stock recorded the peak at Rs 210 in July. The stock is moving sideways between Rs 170 and Rs 210 since then. We note that the 100-day moving average has been a good support to the stock in the recent past. The stock is currently moving higher after testing the long-term trendline positioned at Rs 180. The daily momentum indicators are bullish. The immediate support of the stock is Rs 170 and the next support is at Rs 150. Short-term investors can buy the stock with stop loss at Rs 175. We expect the stock to move up to Rs 225 in the short-term.

Yoganand D.

BL Research Bureau

More Stories on : Stocks | Recommendation | Engineering

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

Stories in this Section
Construction will continue to contribute bulk of revenues

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