Stock For Investment (Midcap)

This stock from small and medium technology stock was in focus in the last session. Volumes were very good and that indicated that some serious buying has emerged here. On the fundamental front, we note that the company has disclosed a phenomenal net jump in net profit for the quarter ended June 2007. This may be one of the reason from strong buying activity emerging in this counter. On charts, we note that prices were going through down to sideways phase for a while. With last two days of up move, we see some renewed buying coming here. Momentum indicators are also well supportive of this positive move in prices and this indicates that the stock is poised for the beginning of fresh uptrend.

Thus we suggest buying above 34 for rise to 40-42/48 with stop of 28.

GSFC. [ 206.40 ]

The prices witnessed a setback after hitting a high at 249 in July 07 and the severe selling pressure brought the prices down to 185. At this levels what came to rescue the prices from the further decline is a strong support of 200 period exponential moving average . Now the readers can observe that obliging a good support the prices in the last trading session managed to bounce
back and close well above the support. Here the prices formed a lower shadow indicating that the renewed buying has materialized at the lower level which has pushed the prices up. Such a move probably signals that the stock is doing all the possible efforts to move in the upward direction.

Thus buy now and on dips down to 190 for a rise towards 224/242-50 with a stop 185.

Deepak Fertilizers [ 101.70 ]

With Fertilizers pack on roll in the last session. We highlight here is Deepak Fertilizers. Prices was seen going thru corrective phase after hitting a high of 109 in the first week of August 07. This decline dragged the stock down near the 200 period moving average support. Also we saw the RSI Oscillator coming down near 40, which is another important support for the uptrend to hold on. Last session’s jump on strong volumes led prices to bounce from the said support on both price and momentum. Closing well with a nice full body candle is a bullish signal. Since the rise has been quite big, we may see some minor pullbacks before it resumes it upward journey further. Since the larger degree chart has a beautiful rounding pattern,

we suggest buying at current and on dip down to 100-99 for a minimum rise of 120 and above it to 145/170 with stop of 10 points.

California Software. [ 82.75 ]

The weekly chart of this stock shows the trend line which contains all the tops within its confines. Now we are in an interesting situation where we can see that with the last week’s rise coupled with the recent power advance the prices vaulted over the trend line resistance along 69-70 levels. Good volumes and strong momentum accompanied this breakout and led the last prices close above it. This means that the investors just needed a trigger to get into the stock in a big way. Such a breakout also confirms that the stock is confirmed for a tremendous move higher.

The technical set up being so encouraging we suggest going long at current and on dips down to 74. Short term targets expected are around 93/102 with a stop 68.

(This Info by IDBI Capital)