The Hindu Business Line : Chart Focus

The stock has been in a major uptrend over the past few years. There are no signs of the completion of this upward move. After a brief correction in recent weeks, the stock appears to have commenced the next segment of the upward move. A rally to the immediate target zone of Rs 1,750-1,800 appears likely.

Investors willing to wait for a longer time frame may get opportunities to exit at Rs 1,950-2,000. The long-term view would be valid as long as the stock holds above the support zone at Rs 1,200-1,210. Shareholders who have entered at lower levels may settle for a stop-loss at Rs 1,200. Fresh exposures may also be considered with a stop-loss at Rs 1,300.

Kirloskar Oil Engines

The stock is in a corrective phase to the earlier upward move. The recent price action indicates the completion of this phase at the low of Rs 276 recorded a few days ago. The next move appears to be towards the target zone of Rs 335-340. The stock enjoys strong support at Rs 265-270. Shareholders may remain invested with a stop-loss at Rs 260. Fresh exposures may be considered at prevailing levels and on weakness, with the same stop-loss. A close below Rs 260 would not negate the long-term positive view; it would only prolong the eventual move towards the target zone. — B. Krishnakumar

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