Technical: IDFC, Power Finance corp, OnMobile, Blue Star, UFLEX, Punjab Sind bank, Corporation Bank ::Business Line

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Please share the long- and short-term prospects of IDFC and Power Finance Corporation.

Jose K. Mathai

IDFC (Rs 140.6):IDFC threatened to go in to a tailspin when it declined below Rs 100 towards the end of last year. But the decline was stemmed at Rs 90 and the stock is powering ahead again. The recent trough can act as the stop for investors and they can also buy on declines with stop at Rs 85.

The medium-term resistance will be at Rs 170. If it gets past this level, it can move on to the long-term ceiling at Rs 220. The stock has already formed a double-top at this level and can struggle to move above it just yet. If it manages to do so, then next target will be Rs 264.

Long-term support below Rs 90 is Rs 44.

PFC (Rs 191.5): The scary plunge in PFC from the peak at Rs 383 halted above the long-term trough formed in October 2008. Investors can draw some comfort at this higher bottom recorded at the recent trough at Rs 131. The stock is also in a strong short-term uptrend from this trough.

This move faces its first hurdle in the zone around Rs 235. The stock reversed from here last week to form a bearish engulfing candle on the weekly chart implying that there can be some weakness in the near future.

Near-term support for the stock would be at Rs 180 and Rs 170. Investors with short-term perspective can hold the stock with stop at Rs 165. Breach of this level will drag the stock to the trough at Rs 131. Conversely move beyond Rs 230 will take the stock up to Rs 260 or Rs 285 in the months ahead.

Stop loss for long-term investors can be at Rs 125. Break below this level can pull the stock to the base between Rs 85 and Rs 100.

Please let me know if OnMobile stock is worthy of taking exposures. I am a long-term investor

. Parimala, A Nithya

OnMobile Global (Rs 73.2): Touching an all-time low at Rs 54 in August 2011, the stock consolidated sideways between Rs 54 and Rs 70 till early January 2012. The stock broke out of the sideways range and is gradually trending higher. You can consider taking exposure to the stock on declines with long-term stop-loss at Rs 54.

Rebound from the support level at Rs 70 can lift the stock higher to Rs 85 and then to Rs 100 in the medium-term. The stock's important long-term resistance at Rs 100 has to be cleared to take it northwards to Rs 120 and then to Rs 130 in the long-term. Subsequent resistance is at Rs 145. On the other hand, plunge below Rs 70 will witness a decline to Rs 65 and Rs 61 in the medium-term.

Kindly give the short-term outlook of Blue Star. Can I enter this stock at current levels?

J. Senthan

Blue Star (186.9): Blue Star has been on a long-term downtrend from its all-time high of Rs 553 registered in September 2010. But, it found bottom at its long-term support at Rs 150 last December and has been moving higher since. The stock's key resistance zone between Rs 210 and Rs 220 halted it last week and the stock has started reversing lower.

A strong weekly close above this resistance band is required before you can consider buying the stock. Stop-loss in that event can be Rs 210. Subsequent targets are Rs 250, Rs 280 and Rs 300.

Failure to move above the resistance zone between Rs 210 and Rs 220 will pull the stock down to Rs 175 or to Rs 165 in the short-term. A strong decline below Rs 150 will reinforce the stock's long-term downtrend and drag it to Rs 125 in the forthcoming months.

I purchased shares of Uflex at Rs 180. Please let me know the short- and medium-term targets.

Satya Prakash Verma

Uflex (Rs 130.1): Ever since peaking out from the stock's life-time high of Rs 325 marked in October 2010, the stock has been on a long-term downtrend. It is trading 28 per cent below your purchase price. After a corrective rally from December 2011 low of Rs 98, the stock encountered resistance at around Rs 145 in early February and started to decline. Strong decline below the immediate support level at Rs 125 can pull the stock down to Rs 117 and to Rs 102 in the short-term.

Conclusive fall below Rs 102 can reinforce the stock's long-term downtrend and drag it down to Rs 90 or Rs 82. Medium-term perspective investors can hold the stock with deeper stop-loss at Rs 98. A well-built rally above Rs 145 will take the stock higher to Rs 160, a key long-term resistance. Only a decisive move above Rs 160 can push the stock higher to Rs 180 in the forthcoming months. Make use of up move to exit from the stock.

Can you please advise on the medium-term price target for Punjab and Sind Bank bought at Rs 91?

Sridhar

Punjab and Sind Bank (Rs 83.1): Punjab and Sind Bank bottomed at Rs 58 in January and is moving higher now. The current up-move faces resistance at Rs 92. The stock is struggling to move above this hurdle and has spent the last two weeks hovering below this level.

If you are an investor with short- to medium-term perspective, you should exit the stock on failure to move above Rs 95 in the forthcoming week. Alternate strategy would be to hold with stop at Rs 78. Decline from these levels will drag the stock to Rs 71 or Rs 58 in the upcoming weeks.

Having said that, strong move above Rs 95 will take the stock higher to Rs 102 or Rs 113 in the medium-term.

I intend buying Corporation Bank around Rs 510. What are the short-term prospects, say, in six months?

Jois Shylaja

Corporation Bank (Rs 477.6): Corporation Bank declined below its key long-term support at Rs 410 in November but the rally witnessed since the beginning of this calendar has helped it zoom well clear of this hurdle. It is possible that a long-term trough was formed at the December low of Rs 335. Long-term investors can therefore hold the stock as long as it trades above Rs 330.

The stock can also be accumulated in declines with the same stop.

That said, the stock is currently reversing lower from the key medium-term resistance at Rs 520. It can correct lower to Rs 450 or Rs 410 in the days ahead. Halt above either of these levels will mean that the uptrend will resume taking the stock higher to Rs 575 or Rs 634 over the medium-term.