Medium term view – MUNDRA PORT – IDBI Capital
This counter was given as a buy during our issue dated 18th Jan 10. It was recommended as a buy at around 646 levels and dips towards 615-05. We had also mentioned that as prices had been forming multiple accumulations, prospects of a rally were quite strong.
In the attached weekly chart we have shown the same parameters and we see that since our recommendation, prices have been doing quite well and moving along expected lines. The sustained rally in the last three months led prices to breakout from multiple resistances in the form of, 38.2% retracement of the swing Jan 08—Nov 08, breakout from intermediate accumulation pattern at 638 levels (orange line), complete and breakout from another short term accumulation at 705 levels (purple line).
We can see here that on reaching our first target, prices also hit resistance around 786, which is the 50% retracement region of the same swing. Not being able to push above this level and on profit taking, prices topped out and slipped into a corrective mode. On the daily time frame, prices are sitting atop good supports. Momentum readings continue to remain firm. For those who failed to book partial profits around our first target can still do so or wait for a move back to 780 to do so and hold remaining for our final target of 910.
Source – IDBI Capital
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Category: Medium Term
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