The Hindu Business Line : Focus of the week

Bombay Dyeing (Rs 372.1): As observed in earlier weeks, the stock is in a long-term uptrend. It could move to the Rs 415-420 range. After a sharp rally, the stock has been in a corrective mode since early April.

This corrective phase appears complete. The sharp rise in price on Friday on the back of a surge in trading volume indicates that the next leg of the rally is underway.

The stock appears to be on course to move to the target zone of Rs 415-420. Remain invested with a stop-loss at Rs 330. A close below this level would warrant closure of long positions. Fresh exposures may be considered on price weakness, with a stop-loss at Rs 330.

Glenmark Pharma (Rs 306.5): The price chart of this company would be a treat to watch for those who believe in the Elliott Wave theory. The stock has traced out a classic "impulsive wave" pattern, which typically unfolds in five segments.

After having completed an impulsive wave at Rs 346 in March, the stock went into a corrective phase. The next leg of the impulsive wave, which again would consist of five segments, appears to have started in June. The stock could move to the target zone of the Rs 355-360 range shortly. Remain invested with a stop-loss at Rs 250. Fresh exposures may also be considered with a stop-loss at Rs 280.

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