Technical Analysis

Sizzling Stocks - Tata Power (Rs 104.7)

Yoganand D. | Updated on June 30, 2012 Published on June 30, 2012

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The stock advanced 11 per cent in the previous week, moving above a key resistance level at Rs 100. This rally has also surpassed the stock’s 200-day moving average poised at Rs 100.

Short-term trend is up for the stock since its May 24low at Rs 85.8.

It faces resistance ahead at Rs 107. A decisive rally above this resistance will push the stock higher to Rs 121, its February 2012 peak levels in the medium-term.

Conversely, the inability to rally above Rs 107 will pull the stock down to Rs 96 and then to Rs 88. Key support below Rs 88 is at Rs 80.

The stock has an important long-term resistance in the band between Rs 133 and Rs 135.

A conclusive rally above this resistance will take the stock higher to Rs 147 in the long-term.

United Phosphorus (Rs 125.5)

The stock bottomed out on June 4, after registering a 52-week low at Rs 105. This reversal was triggered by positive divergence in the daily moving average convergence divergence indicator. Since then, the stock has been on a short-term uptrend.

Last week, the stock price jumped 10 per cent with good volumes and is testing resistance at Rs 125. An emphatic move above this level will take the stock higher to Rs 138. Key supports are positioned at Rs 115 and Rs 105.

Medium-term trend is down.

A rally above Rs 138 is required to alter the medium-term downtrend and lift the stock higher to Rs 150 in the approaching months.

Published on June 30, 2012
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