Economy

Sizzling Stocks: Max India (Rs 192.7)

Yoganand D. | Updated on November 15, 2017 Published on April 14, 2012


The stock bottomed in early January this year taking support from its long-term base level at Rs 140. Since then, it has been on a medium-term uptrend. Penetrating its 50 and 200-day moving average as well as a key resistance at Rs 185, the stock accelerated last week. But, Friday's decline evaporated some of its weekly gains and the stock finished the week gaining 10 per cent. We notice the formation of a bearish engulfing candlestick pattern in the daily candlestick chart implying short-term trend reversal. The stock can continue its decline and reach Rs 185 and then Rs 174 in the short-term. Nonetheless, its medium-term uptrend will remain in place as long as the stock trades above Rs 166.

Strong breakout of the immediate resistance at Rs 208 will accelerate the stock higher to Rs 220 and to Rs 236 in the medium-term.

BASF India (Rs 620.4)

The stock skyrocketed 19.5 per cent breaking out of its sideways consolidation phase between Rs 490 and Rs 530 last week. This rally has reinforced the stock's medium-term uptrend that has been in place from its December 2011 low of Rs 427. In the medium-term the stock can rally to Rs 655 and then to Rs 685.

But in the near-term, we do not rule out a corrective decline as the stock's daily indicators are featuring in the overbought levels and it is testing key medium-term resistance level at Rs 628. A decline to Rs 590 or even to the next support level at Rs 557 is possible in the near-term. Strong weekly close below Rs 505 will mar the stock's medium-term uptrend and drag it down to Rs 490 and then to Rs 473.

Published on April 14, 2012
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