Sunday, April 12, 2009

Technical Analysis - Madhucon Projects

Madhucon Projects (Rs 72): This stock tested the support at Rs 42 twice, in November 2008 and again in March 2009. A short-term rally is currently in progress since March 12.

However this stock is extremely volatile and the nature of the decline from the January 6 peak, as the stock moved lower from one circuit to another, implies that risk-averse investors ought to steer clear of this stock since it becomes difficult to sell such stocks once they begin declining. Short-term targets for the stock are Rs 83 and Rs 104. Investors should switch out from this stock in such rallies. Decline below Rs 40 will take the stock to Rs 18.