The Hindu Business Line : Focus of the week

GE Shipping (Rs 225): After moving to a high of Rs 221 in mid-September, the stock went into a corrective mode. It staged a breakout from this correction last week. The stock could move to the immediate target zone of Rs 245-250. There is a strong support zone at Rs 215-218.

Investors may consider long positions now and on price weakness. Stop-loss for long positions may be placed at Rs 215. The positive outlook would be in force as long as the stock holds above Rs 205. As a stop-loss at Rs 205 will not be appropriate from a risk-reward perspective, investors may settle for the next support level at Rs 215 as the stop-loss.

Venus Remedies (Rs 255): The stock was in a major upward trend in the first half of this year. It touched a high of Rs 320 in July and has been in a downward corrective phase since then.

This corrective phase appears to have been completed at the recent low of Rs 180, recorded a couple of weeks ago. The recovery since this low could mark the start of first phase of a new upward trend. The stock could move to the immediate resistance zone at Rs 275-280 and get into a corrective phase subsequently. Long positions may be considered now and on declines, with a stop-loss at Rs 215. Investors willing to play the waiting game may get opportunities to exit at Rs 345-350.

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

More Stories on : Technical Analysis | Technical Analysis

Stories in this Section
Investment quiz

Mettle only in frontline metal stocks now

Leaving a mark on the BSE

Closed-end funds: Stepping out of the rat race

Bounce-back in equities — Patterns in a choppy market

What goods vehicles are no good for

Delphi to make diesel systems in Asia

Franklin Prima: Invest

Don't overload on equity funds

Tata Tax Saving Fund: Hold