Sizzling Stocks: Jubilant FoodWorks, Lanco Infratech ::Business Line

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Jubilant FoodWorks (Rs 1301.4)

After taking support at Rs 1,040 in late February this year, Jubilant Foodworks started moving higher. The stock skyrocketed 13.7 per cent with good volume breaking key resistance at Rs 1,250 last week.

With this rally, the stock appears to have resumed its long-term uptrend that has been in place since February 2010 low of Rs 161.

It is trading well above its 50- and 200-day moving averages.

However, the stock is facing next important resistance at Rs 1,325. A conclusive rally above this level will take the stock higher to Rs 1,373 and 1,390 range in the short-term and then to new high in the medium-term.

Inability to break through the resistance range of Rs 1,373 and Rs 1,390 will confine the stock to a sideways move between Rs 1,250 and Rs 1,390.

Key short-term support is positioned at Rs 1,250 and a fall below this level will pull the stock down to the Rs 1,130-Rs 1,150 band. A strong decline below this band will mar the stock's ongoing short-term uptrend and drag the stock down to Rs 1,040 in the medium-term.

Lanco Infratech (Rs 12.3)

Lanco Infratech was very volatile last week swinging between Rs 11 and Rs 14.25. But it managed to close on positive note by gaining almost 13 per cent last week. The daily relative strength index has entered the bullish zone from the neutral region. The stock is currently testing key resistance at Rs 12.5.

Strong move above Rs 12.5 will take the stock higher to Rs 14 in the near future.

Long as well as medium-term trends are down for the stock.

Strong rally above Rs 14 is required to alter the stock's medium-term downtrend and push the stock higher to Rs 15 and then to Rs 16.5 in this time period.

Failure to surpass Rs 14 can pull the stock down to Rs 11.5 or to Rs 10.5 in the medium-term.