Sizzling Stocks - Sesa Goa (Rs 187.3)
The stock surged over 30 per cent, registering an intraweek high of Rs 198.9 before settling with 22.5 per cent gains for the week. This rally was on the back of the delisting of Sterlite Industries with effect from August 27. Moreover, Sesa Goa was included in the S&P BSE Sensex in place of Sterlite Industries. Following a medium-term downtrend, the stock found support at around Rs 120 in late July and early August 2013. Subsequently, it reversed direction triggered by positive divergence in daily relative strength index and moving average convergence divergence indicator. Since then, the stock has been on a short-term uptrend. Last week's strong rally breached its key resistances at Rs 160 and Rs 175 decisively. There has been an increase in volume over the past two weeks. The stock is trading well above its 50 and 200-day moving averages.
The stock is facing resistance in the band between Rs 200 and Rs 205. Only a strong breakthrough of this band will pave the way for an up-move to Rs 220 and then to Rs 235 in the medium-term. Next significant resistances are pegged at Rs 245 and Rs 260. A conclusive rally above Rs 300 will be conducive for a long-term up-move to Rs 350. Important supports for the stock are positioned at Rs 175, Rs 160 and then at Rs 140.
Mahindra & Mahindra Financial Services (Rs 252.7)
The stock surged 16.8 per cent last week, taking support from its key medium-term base level at Rs 215. The stock's recent up-move has emphatically breached its important resistance at around Rs 240. With this rally, the stock appears to have resumed its long-term uptrend that has been in place from its June 2012 low of Rs 120. Short-term trend is also up. However, the stock is currently testing significant resistance at Rs 260. A strong breach of this resistance will take the stock northwards to Rs 285 and to new highs in the medium-term. But, inability to surpass Rs 260 will confine the stock to hovering sideways in the wide range between Rs 215 and Rs 260, before progressing higher.
On the downside, a decisive fall below Rs 215 will pull the stock down to Rs 200 and then to Rs 180 in the medium-term. Key immediate supports are pegged at Rs 240 and Rs 228 levels.
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