IVRCL breached the key support at Rs 226 in October 2008 and then spiralled lower to bottom at Rs 56 in October 2008. The sharp rebound from this level and the formation of a higher bottom at Rs 82 in January 2009 augurs well for the stock. A long-term bottom could have been formed at last October’s lows. Long-term investors should therefore hold the stock with a stop at Rs 80.The stock can rise to Rs 190 over the next 12 months where the 200-day moving average is positioned. Investors with a medium-term perspective can divest part of their holdings on a failure to penetrate this level. Move beyond Rs 190 will take the stock to Rs 250.
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