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Punj Lloyd (Rs 76.7)
Punj Lloyd kept investors riveted by sailing forth right from the outset of the week. This stock received a booster in the form of an order win from GSPC on Monday and it went on to build on these gains to close the week more than 15 per cent higher. The stock faces strong short-term resistance around Rs 78. Inability to move past this level will result in decline to Rs 62 or Rs 53 in the weeks ahead.
On the other hand, close above Rs 78 will mean that the stock can then go on to Rs 88 or Rs 108 or even Rs 147. The long as well as the medium-term trends in the stock are however down. A strong close above Rs 147 is the first requisite to signal that the structural trend in the stock is reversing higher.
Bata India (Rs 610.7)
This shoe-maker refused to stay grounded and zoomed higher to the intra-week peak of Rs 619. Bata India has been on fire right from the beginning of this year, having delivered 85 per cent YTD return. The stock is currently at life-time high. A 1:1 extrapolation of the move that began in February 2009 gives us the immediate target of Rs 640. Therefore, investors need to be wary in the entire range between Rs 600 and Rs 650.
Short-term supports are at Rs 575 and Rs 545. The medium-term view will be under threat only if the stock goes on to close below Rs 500.
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