Idea Cellular (Rs 55.2):Idea Cellular has been consolidating sideways since the trough at Rs 34 formed in October 2008. Though the stock is struggling to move past the resistance band between Rs 55 and Rs 60, the formation of higher troughs since the October low is a positive for the stock. Near-term trend deciding level is at Rs 41 and investors can continue to hold it as long as it trades above this level. Investors wishing to buy the stock can do so in the band between Rs 40 and Rs 50 with a stop at Rs 32.
The targets for the next twelve months are Rs 58 and then Rs 70. However, a reversal below Rs 70 will result in a sideways movement between Rs 40 and Rs 70 for a few more months. Investors with a short-to-medium term perspective should book profits around this resistance. Move beyond Rs 72 will take the stock to Rs 83.