Sizzling Stocks: Sun TV Network:: Business Line

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Sun TV Network (Rs 343.6)

Following a minor pause around Rs 300, the stock accelerated and zoomed 12 per cent accompanied by good volumes last week. It has been on an intermediate-term downtrend since encountering resistance at Rs 550 in early January this year. However, from its June 2 low of Rs 260, the stock has been on a short-term corrective up move. It is currently facing significant resistance at Rs 380 levels.

Strong break through of this level can lift the stock higher to Rs 410 and then Rs 430. Only an emphatic move above Rs 450 will mitigate the stock's downtrend and take it to Rs 490-Rs 500 in the medium term. On the other hand, reversal from the resistance at Rs 380 can pull the stock down to Rs 310 and Rs 270 in the medium term.

Infrastructure Development Finance Company (Rs 119.8)

After testing an important long-term resistance at Rs 140 during early June, IDFC has resumed its intermediate-term downtrend that has been in from its November 2010 peak of Rs 218. Last week the stock accelerated downwards by tumbling 10 per cent with extra-ordinary weekly volumes. It is hovering well below its 21- and 50-day moving averages. However, the stock is testing its key long-term support band between Rs 110 and Rs 120. This support band can provide cushion for the stock in the near term. A reversal upward from this band can push the stock higher to Rs 130 and then to Rs 140. Key resistance above Rs 140 is at Rs 160.

Conversely, a decisive close below Rs 110 will reinforce the bearishness and can pull the stock down to Rs 100, Rs 90 or even to Rs 80 levels in the medium term