Financial Daily from THE HINDU group of publications
Sunday, Mar 05, 2006
Financial Daily from THE HINDU group of publications Sunday, Mar 05, 2006 |
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Investment World
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Technical Analysis Markets - Stock Markets Power plays B. Krishnakumar
Should I hold or exit from Siemens bought at Rs 4,537 and BHEL at Rs 1,900? Rajesh, Shrihari Kulkarni Siemens (Rs 4,975): The company has been amongst the star performers at the stock market in the past few years. Despite the recent run-up in price, there appears to be upside potential extending up to Rs 5,250-5,300. There is a possibility of the stock entering into a short-term corrective phase. Such price weakness would be an opportunity to buy the stock, as the long-term outlook is positive. The positive outlook would be in force as long as the stock trades above Rs 4,500. Hold with a stop loss at Rs 4,750 for a portion of the holding and at Rs 4,500 for the balance, Fresh exposures may be considered on the evidence of support at around Rs 4,750-4,800. BHEL (Rs 2,125.8): The stock has been a star performer amongst the stocks that form part of the index. Despite the recent surge in value, there appears to be upside potential.
A move towards Rs 2,250-2,300 appears likely. The recent surge in the share price has however pushed the stock into an overbought zone. A short-term corrective phase may materialise shortly. Such weakness ought to be viewed as an opportunity to take exposures, as the long-term outlook is positive. Shareholders may remain invested with a stop loss at Rs 2,000. Is it advisable to hold Batliboi bought at Rs.146? P.Bharath Batliboi (Rs 138): Remain invested with a stop loss at Rs 120, as the long-term outlook is positive. After moving to a high of Rs 162 in January, the stock went into a corrective phase. This corrective phase appears to have been completed at the recent low of Rs 118.
The subsequent recovery appears to be the start of the next leg of the upward move. The stock is likely to move to target zone of Rs 175-180. This view would be valid as long as the stock holds above the stop loss level at Rs 120. Fresh exposures may be considered on weakness, with the same stop loss. Please also let me have your views on Cummins India bought at Rs 221? Valli Kasi Cummins India (Rs 243): Taking into account the positive outlook and your entry price, it would be advisable to hold with a stop loss at Rs 220.
The stock appears to be headed towards the next target zone at Rs 265-270.
Fresh exposures may also be considered at the Rs 232-237 band, with the stop loss at the same level of Rs 220.
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