Financial Daily from THE HINDU group of publications
Sunday, Jan 19, 2003
Financial Daily from THE HINDU group of publications Sunday, Jan 19, 2003 |
|
|
|
|
|
Investment World
-
Stock Markets Markets - Commentary Further uptrend in Jindal Iron B. Krishnakumar
AFTER some weakness on Monday, the market sentiment saw a dramatic turnaround with the indices staging a sharp turnaround in the next three days of the week. However, the weak trend in the technology stocks pulled imparted negative sentiment on Friday. Sensex (3370.4): The overall market trend continues to be weak. At present, only a close above 3420 along with a pick up in trading volume would impart positive trend. On the other hand, a close below 3320 would be an early indicator of a further slide. Jindal Iron (Rs 65.35): The focus this week is on Ramco Systems and Jindal Iron. The share price of Jindal Iron could touch the Rs 78-80 band shortly. Existing holders could remain invested with a stop loss at Rs 48. Fresh buying may also be considered with a stop loss at Rs 48 and a price target of Rs 78. Ramco System (Rs 494): As observed a few weeks ago (refer edition dated December 22), the share price of Ramco Systems has comfortably moved past the then projected target price of Rs 432. The overall outlook for Ramco Systems continues to remain positive, Existing holders could remain invested with a stop loss at Rs 445. Investors who are in-the-money could have a trailing stop loss in place to protect unrealised profit. Recommendation follow-up The price movement in Tata Engineering, Wipro and Tata Infotech was almost in line with last week's expectations. The share price of Tata Engineering managed to move closer to the price target of Rs 174, mentioned last week. Going by the recent price action, the scrip could touch the Rs 180 level shortly. Existing holders of the Tata Engineering stock could remain invested with a stop loss at Rs 155. Move past Rs 174 could be used to reduce exposures in a phased manner. The view that the share price of Wipro appears to be headed towards the target price of Rs 1,200 continues to remain valid. As of now, only a move past Rs 1,700 would negate the negative outlook for Wipro. A close below Rs 1,480 would confirm the bearish outlook. Existing holders could remain invested with a stop loss at Rs.1480 while intermittent price rally could be used to reduce exposures. In the case of Tata Infotech, the scrip touched a low of Rs 217.1 before staging a mid-week recovery. The overall trend continues to remain weak. However, a move past Rs 245 would negate the weak trend and could impart short-term bullishness. Existing holders could remain invested with a stop loss at Rs 225. A drop below Rs 225 could be used to take short positions in Tata Infotech with a very close stop loss in place. On the other hand, a move past Rs 245 could be used to take long positions with, again with a very close stop loss.
(Note: The analysis and opinions expressed in these columns are based on the technical analysis of the past price behaviour. Analysis and price targets are based on the Elliott Wave Analysis. There is a risk of loss in trading)
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2003, 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
|