Technical Analysis

Sizzling Stocks - Geodesic (Rs 61.5)

Yoganand D. | Updated on October 22, 2011 Published on October 22, 2011


Since its peak of Rs 142 recorded in November 2010 , the stock has been on an intermediate-term downtrend. Strong move above Rs 90 is required to reverse this downtrend. However, the stock's significant medium-term support at around Rs 49 cushioned it from declining further in early October. Taking support from Rs 49, the stock zoomed 15.5 per cent last week. With this rally we notice the formation of a double bottom pattern since early August with neck line at Rs 62. The stock is currently testing its neck line. There is an increase in volumes over the past four trading sessions.

Strong break through of the neck line will strengthen the bullish momentum and accelerate the stock to Rs 67 and then to the next resistance level of Rs 71 in the medium-term. However, failure to surpass the neckline can pull the stock down and it can resume its sideways consolidation in the broad range between Rs 49 and Rs 62. Immediate support for the stock is pegged at Rs 55 and next at Rs 49.

Raymond (Rs 384.7)

Raymond's key long-term support at around Rs 325 provided base for the stock during late August and early October this year. Reversing upwards from this support, the stock sky-rocketed almost 15 per cent last week, triggered by positive September quarter results. The stock will face resistance at Rs 400, a significant long-term hurdle. An emphatic break through this level will give a target of Rs 450 in the medium-term.

However, inability to surpass this level will pull the stock down to Rs 370 or to Rs 345. On the other hand, breach of the support at Rs 325 will pull the stock down to Rs 300 and then to Rs 265.

Published on October 22, 2011
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