The Hindu Business Line : Focus of the week

Crompton Greaves (Rs 663.1): The stock is in a major uptrend. It has been one of the star performers since January 2004. The recent uptrend does not appear complete and the stock could move to the Rs 825-850 range. There is, however, a possibility of short-term weakness extending to the Rs 575-580 range.

A drop below Rs 620 would increase the odds of a drop to the Rs 575-580 range. A move above Rs 700 would indicate the resumption of the upward trend and would also effectively negate downside risk.

The long-term uptrend would be under threat only on a close below Rs 540. Investors may use price dips to take exposures with a stop-loss at Rs 540. Alternatively, long positions may also be considered on a close above Rs 700, with a stop-loss at Rs 625.

Andhra Bank (Rs 103.8): After a steady uptrend during 2004, the stock has been in a major corrective phase since March. The corrective phase appears to have been completed at Rs 91.2. A potential "double-bottom" pattern also appears to have been completed at this price level. A move above Rs 118 would validate this pattern and would help the stock move to the target zone of the Rs 135-140 range.

The positive outlook would be in force as long as the price holds above the stop-loss level at Rs 89; remain invested with this stop-loss level. Fresh exposures may be considered at prevailing levels as well as on declines, with the stop-loss at Rs 89.

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