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Blue Dart Express skyrocketed 34 per cent accompanied by extraordinary volumes last week on speculation of delisting. It took twin supports, from its key long-term support level and up trend-line around Rs 1,000 in late March 2011 and started to move higher. The stock broke through its significant resistance level of Rs 1,200 and marked a new all-time high of Rs 1,478 on April 8.
We notice the formation of shooting star candlestick pattern, which is a bearish reversal pattern. Moreover, the stock's daily relative strength index is featuring in the over bought zone signalling that a near-term correction is due. The stock can decline to its immediate support level of Rs 1,200 in the ensuing days. Next support is at Rs 1,000. Medium-term target for the stock is Rs 1,500.
PSL (Rs 91.9)
The stock zoomed 21 per cent during the previous week with heavy volumes. However, the stock encountered twin resistances at Rs 95, a medium-term key resistance level and intermediate-term down trend-line and is currently testing resistance. The stock has been on an intermediate-term downtrend since its January 2010 peak of Rs 188. Only a decisive move above Rs 140 will mitigate this downtrend. Inability to surpass the resistance of Rs 95 will pull the stock down to Rs 83 and then to Rs 75 in the near-term.
On the other hand, emphatic breakthrough of Rs 95 can take the stock higher to Rs 105 or Rs 110 in the short-term. Strong move above Rs 110 will give a medium-term target of Rs 120.
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