This stock from the engineering sector has been in the limelight in the current month. However after hitting its recent high of 147 was going thru a corrective phase, indicating that the presence of profit booking by the short-term investors. Last session‘s rise have led the stock to bounce back from the prior top support zone with a firm upside move (see line chart). This supported by good volumes points out to the fact the fresh buying activity has emerged in this counter. Proving this fact further is the momentum indicator such as the RSI oscillator, which turned up afresh from 60 and has added more strength to the prices.
With the trends on the higher degree chart being well supported by the renewed strength seen on the short-term charts, we recommend investments here for rise to 154/170 with stop of 10 points.
Pidilite (149.85)
A leading player in the synthetic adhesive market was seen going thru reaction phase for a while now. This corrective period led the prices down from its all time high of 160 to 130 level. Presence of prior tops support around 130 as well as the higher degree chart being placed in a bullish mode, we saw prices halting its declines and slipped into a sideways zone. Friday’s jump on good volumes invited fresh momentum here, which powered the prices to launch fresh uptrend here. In line with this, we also saw the daily price ROC and the Stochastic oscillator moving into a buy mode and that now adds more strength to the renewed up trend on the daily charts.
With this kind of come back of prices and momentum, we suggest buying above 141 for rise towards 160/181 with stop of 129.
Akar Tools. (43.40) BSE: 530621
On the technical charts, we note that prices were facing a great difficulty in clearing a strong valuation hurdle near 42-43 levels and were moving sideways. Having tried to fight with this hurdle for a few months the stock finally gave up and came down to hit a low of 23 in March 07. Forming a good base around this region, prices completed a short term accumulation pattern. This process gives us a clue that a there has been a sustained consolidation at bottom which can lead to the greater targets in the future. Now we see that the buying pressure has pushed the stock up and it moved up smartly breaking out of the pattern as well as the resistances and shifting the trend in to bullish side. After hitting its recent high of 51, prices slipped into a reaction phase.
The current dip is just a temporary profit booking and we expect the stock to bounce back from the support placed at 39 levels. So buy on dips towards 39 for a target of 52/56. Stop 38.
Prism Cement (56.45)
Cement were one of the least affected sector in the recent fall seen in the market. This suggest that the overall trend in this sector is very strong and any revival in the market will attract buying here. In the last session, we saw some demand returning back in this sector. Among them this is one, which has been maintaining the status of out performer. On the technical chart, we note that prices have been undergoing thru reaction phase for a while now. With the price damage being minimal as compare to the earlier rise, the over all trend remains intact. In the last session’s rise, prices have picked up from its near-term support area on increase in volumes.
As the momentum indicators being in a uptrend mode, we suggest buying at current and on dip down to 48 for rise to 58/65 with stop of 45.
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