Wednesday, 11 November 2009

Great Eastern Shipping (Rs 247.7): Sell

We recommend a sell in the stock of Great Eastern Shipping Company from a short-term horizon. From March low of Rs 142, the stock had continued to be in an intermediate-term uptrend till October high of Rs 310. After encountering significant long-term resistance around Rs 310, the stock changed direction by resuming its long-term downtrend. The stock has been trending downwards since January 2008 high of Rs 572. In late October, the stock conclusively penetrated its intermediate-term up trendline as well as 50-day moving average. It is trading well below its 21- and 50 day moving averages. The daily relative strength index (RSI) has re-entered the bearish zone and weekly RSI is slipping towards this zone in the neutral region. We are bearish on the stock from a short-term perspective. We expect it to decline until it hits our price target of Rs 222. Traders with short-term horizon can sell the stock while maintaining stop-loss a stop-loss at Rs 261.

Source: thehindubusinessline

Fedders Lloyd Corp (Rs 72.5): Buy

Investors with a short-term trading perspective can buy Fedders Lloyd Corporation at current level. Short-term trend in the stock is bullish. It has been moving up vertically without any correction since October 6. Momentum indicators in the daily chart have moved in to the overbought region but there is no sign of weakness yet. The stock closed above the immediate resistance at Rs 69 on Monday implying that the vertical climb can extend. Investors can buy the stock with a stop at Rs 68. The uptrend is expected to take the stock to the target of Rs 82 in the short-term.

Source: thehindubusinessline

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.