Sunday, April 12, 2009

Technical Analysis - Rolta

Rolta (Rs 72.1): Rolta India went in to a tailspin in March this year that ended at the trough of Rs 42. There has since been a strong 70 per cent gain from this trough.

The zone between Rs 35 and Rs 45 is also a strong long-term support zone for this stock and a sustainable trough could have been formed at Rs 42.

That said, the run-up from this trough has been very sharp and swift and a correction can materialise around Rs 71 or Rs 78 that drags it lower to Rs 55 or Rs 60 again.

Investors should wait for declines to buy the stock with a stop at Rs 50. Else wait for a weekly close above Rs 80 to buy the stock. Subsequent targets would be Rs 100 and Rs 150.

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