SHORT-TERM INVESTMENTS

This stock from construction segment was in the limelight in the last week. The rise here was also
backed by positive news of bagging order from National Power Corporation for Tapovan Vishnugad Hydro Electric Project. The attached weekly chart shows that prices were struggling to clear the 61.8% retracement hurdle and also gap region around 477. However the formation of higher bottoms and prices holding support of the trend line clearly suggested the fact that the uptrend is building here. Last week’s rise has led prices to overcome 477 region and ended well. This is a bullish signal and also makes us to expect some speedier moves here. An increase in volumes accompany the current move and also the RSI has shown renewed strength. All this is healthy for the trend. Hence we recommend buying at current and on dip down to 477 for rise to 535/557 with stop of 460.

Parekh Aluminex (226.15)

Prices launched a steady uptrend after hitting a double bottom around 86 in March 2007. This rise led the stock to around 240. What a phenomenal rise!!!! Near this region, it completed a accumulation pattern and got stuck in a sideways phase. This was possibly owing to the presence of profit booking after such a brilliant move. Lack of price damage in this phase indicated that the trend here was intact. Last week’s closing was quite strong as compare to the earlier ones in this range bound phase. It has given a nice weekly closing near its prior shadow region with a strong up thrust. Further rise will trigger breakout from the said pattern and lead to higher targets. The weekly CCI oscillator has turned up afresh from zero region, thereby showing renewed strength. All this positive developments points out that the trend is again getting back into trended mode. Thus we suggest buying above 230 for rise to 249/260 with stop of 200.

Idea Cellular (133.80)

This stock from the Telecom space has been trapped in a range bound phase with wild swings on either side. On the higher side of the range, we note the stock struggling to clear the top registered in first week of June 07 around 130. Formation of upper shadow near this area clearly suggested the presence of selling pressure near the resistance area. Last week’s rise was quite powerful and led prices to clear the crucial hurdle of 130 and ended at a new high. Both volumes and momentum were in full support of the move and that is an encouraging sign. Now we need to see the proper follow thru here on the higher side for the trend to maintain higher. Hence look to buy either above 135 and also on dip down to 130 for rise to 150-53/165 with stop of 125.

Jyoti Structure (243.35)

The attached weekly chart shows that prices have been struggling to clear the trend line resistance for a while now. Formation of higher tops and bottoms in this period indicated the fact that despite of the resistances the uptrend here was maintained. Last week’s smart rise saw nice trended moves here which pushed prices into newer orbit by decisively clearing the trend line resistance. Along with this move in prices, momentum saw a good boost here. We have highlighted here is the weekly RSI oscillator, which has turned up afresh from 60– positive signal. As the lower degree chart being supportive of the current move here, we suggest to buy in this stock above 245 for an upside target of 268/280 with stop of 233.