Brigade Enterprises has also been reduced to nought in the remorseless correction witnessed over 2008. However some signs of strength are visible since the life-time low of Rs 27 formed on March 6. The strong up-trend from this trough has resulted in a gain of about 114 per cent. The stock has also moved above the long-term down-trend line. Medium-term resistance for the stock is around Rs 70. A downward reversal from here can result in a sideways move between Rs 35 and Rs 70 for a few months. Investors with a medium-term horizon can book some profits on a failure to clear this resistance.
Long-term investors can hold with a stop below the all-time low at Rs 25. Targets for the next two years are Rs 100 and Rs 144.
Our Research Team Views :
Day High Low Rs.52-50 on 29th April 2009 Monthly High Low Rs.56 -37 6M H/L Rs. 56-28
This share has risen sharply more than 90% in the last 2 months.
Our Recommendation : AVOID better to focus on frontline stocks DLF, India Bulls Reality or HDIL for better returns. Wait for the weakness in the marekt for buying ; buy on correction in the stock markets.