The Hindu Business Line : Balaji Telefilms (Rs 190.60): Buy

We recommend a buy in Balaji Telefilms from a short-term perspective. From the charts of Balaji Telefilms, we see that after encountering a resistance at around Rs 374 in late December 2007, the stock was on a medium-term downtrend and found support at Rs188 in mid February 2008. Since then, the stock has been consolidating sideways between Rs 185 and Rs 230. During this sideways consolidation, the stock breached the medium-term down trendline. We also notice a bullish div ergence in the daily momentum indicator and this indicator is likely to enter the neutral region from the bearish zone. At present, the stock is hovering around a key support level of Rs 188. Taking into consideration of the bullish divergence and the presence of significant support we are bullish on the stock for the short-term. We expect the stock to move up to our target price level of Rs 220 in the short-term. Investors with a short-term perspective can buy the stock while keeping the stop loss at Rs 172.

Yoganand D.

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