Sizzling stocks - Oracle Fin Serv; Godrej Ind ::Business Line

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Oracle Fin Serv (Rs 2,583)

On Friday, the stock skyrocketed 16 per cent with heavy volume, emphatically breaking through multiple key resistances. With these gains, the stock has advanced almost 19 per cent for the week. The daily indicators and oscillators of the stock are featuring in the overbought area, signalling a potential corrective decline or a pause in the current uptrend. The stock is hovering well above its daily Bollinger Bands implying that a near-term corrective decline is on the cards. Moreover, the stock is facing significant long-term resistance at Rs 2,630.

Short-term declines can find supports at Rs 2,460, Rs 2,400 and Rs 2,350. Subsequently, important medium-term support is at Rs 2,200. A strong weekly close below Rs 2,150 will mar the stock's medium-term uptrend and pull it lower to Rs 1,940.

On the other hand, decisive rally above Rs 2,630 will lift the stock higher to Rs 2,700 and Rs 2,800 in the medium-term.

Godrej Industries (Rs 250.7)

The stock zoomed 16.4 per cent with extraordinary weekly volumes in the previous week. But the stock is currently testing key resistance at around Rs 247, its September 2010 peak. Its daily relative strength index and moving average convergence divergence indicator are hovering in the overbought territory implying a near-term correction. Further, the stock has breached the upper boundary of the daily Bollinger Bands which indicates overbought position.

Therefore, a downward reversal from the current resistance level will pull the stock down to Rs 230 and then to Rs 210 in the short-term. Next significant supports below Rs 210 are at Rs 180 and Rs 165 levels.

Conclusive breakthrough of the resistance level of Rs 248 in the medium-term can lift the stock northwards to Rs 265 and to Rs 292.