Kalyani Steels - Sell

We recommend a buy in the stock of Kalyani Steels from a short-term perspective. It is apparent from the charts of the stock that since peaking out in August 2010 around Rs 156, it has been trending downwards. While trending down, the stock formed a falling wedge pattern spanning between late November 2010 and late May. Generally falling wedge patterns are continuation patterns. However, in few cases, it also portrays a bottom formation. In this case it is a bottom reversal pattern.

The stock found support around Rs 72 and bounced up changing its direction last week. This reversal is backed by the positive divergence in the weekly moving average convergence divergence indicator.

Our short-term outlook is bearish on the stock. We anticipate its current decline to prolong until it reaches our price target of Rs 65 or Rs 68.5 in the approaching.

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Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

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sowmya@ravinaconsulting.com
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Kalyani Steels - Buy

We recommend a buy in the stock of Kalyani Steels from a short-term perspective. It is evident from the charts of the stock that it had been on an intermediate-term downtrend from its August 2010 peak of Rs 156 until it found support around Rs 90 in early December. Taking support from its long-term base around Rs 90, the stock changed direction. It has been on a short-term uptrend since then. On January 3, the stock jumped 7.6 per cent accompanied with heavy volume, conclusively breaking through its immediate resistance as well as downtrend line around Rs 110. This has reinforced the bullish momentum and the stock is hovering well above its 21 and 50-day moving averages.

The 14-day relative strength index has entered into bullish zone from the neutral region and weekly RSI is rising in the neutral region. Daily moving average convergence divergence oscillator is on the verge of entering into the positive territory implying upward momentum. Considering the stock's recent break through, we are bullish on it from a short-term perspective. We expect it's ongoing rally to continue until it reaches our price target of Rs 119 or Rs 122.5 in the trading sessions ahead. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 111.5.

Source : Businessline

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

Pattamal Plaza

3rd Cross Kamanahalli

BANGALORE 560084

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor