The Hindu Business Line : Follow-up

As anticipated last week, a positive trend prevailed. The stock ruled firm and appears on course to move to the target zone of Rs 205-210. The positive outlook would be in force as long as the stock holds above Rs 142.

As it would not be practical to have a stop-loss at Rs 142 from a money-management perspective, investors may settle for a stop-loss of Rs 165.

Fresh exposures may also be considered at Rs 172-176, with the same stop-loss.

Take partial profit if the stock faces resistance at Rs 205-210. Use a trailing stop-loss in the event of a sustained rally beyond this target zone.

KCP Sugar (Rs 77)

The bullish trend that prevailed in the early part of the week helped the stock move to the first target zone at Rs 88-90. The price pattern in the last couple of days indicates that the stock has entered a corrective phase.

A drop to Rs 73-75 appears likely.

The long-term outlook remains positive and a move to Rs 112-115 appears likely.

The rally towards this target zone would resume on the completion of the short-term corrective phase that the stock is presently stepped into. Investors who have entered at lower levels may consider partial profit booking.

Stop-loss for long positions may be placed at Rs 66. Evidence of support at Rs 70-72 may be used to enhance exposures.

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