Sunday, April 11, 2010

Divis Labs - Buy on declines

Divi's Laboratories (Rs 699): Divi's Laboratories found support at Rs 382 in March 2009, retracing 61 per cent of its structural upmove. The stock subsequently resumed its longer-term trend. Investors with long-term perspective can hold the stock with stop at Rs 490. In this time frame, it can move higher to target of Rs 780 and next target of Rs 950.

Though the short-term trend also is up since this February low of Rs 558, the stock encountered key hurdle around Rs 710 last week. We don't rule out a near-term correction till Rs 650. A conclusive close above Rs 710 will take to Rs 750 in the short-term. Investors can remain invested with stop at Rs 635.

Source : Businessline

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