The structural bull-market that began in April 2005 and took Aptech from Rs 32 to Rs 450 has been decimated by the fall witnessed since the beginning of 2008.
A medium-term trough was formed at Rs 51 on October 27, 2008 and the stock has been consolidating between Rs 50 and Rs 100 since then.
The recent surge in April was arrested just under the long-term moving average at Rs 130. This is the key medium-term resistance level for the stock.
Aptech can oscillate between Rs 60 and Rs 130 over the medium-term. A firm close above this resistance will take the stock towards the long-term target of Rs 170 or Rs 250. These levels could act as a ceiling for this stock for the next couple of years. Long-term investors can hold as long as it trades above Rs 30. Stop for medium-term investors can be at Rs 70.
Our Research Team Views :
Day High Low Rs.94-91 on 29th April 2009 Monthly High Low Rs.117 -70 6M H/L Rs. 117-60
This share has risen sharply more than 90% in the last 2 months. The following are the ideal ranges for buying and selling :
Our Recommendation : AVOID better to focus on Wipro / TCS
Wait for the price to the buying range on correction in the stock markets.
Holding period : 12-18 months Returns expected : 100% plus