26-10-2005

Stocks to watch 26-10-2005

The market is trading lower amid losses in pharma, FMCG, banking, metal, capital goods, oil and technology stocks. The Sensex is down over 150 points.


Technical Analyst, E Mathew discusses Ranbaxy, ACC, Grasim, Tisco, BPCL and Satyam.

Excerpts from an interview with Technical Analyst E Mathew:


On Ranbaxy:
Ranbaxy is breaking its support levels with ferocity. It has broken its support level at Rs 370- Rs 375 zone. Initiate a long position in Ranbaxy if and only if this stock is now able to trade above the Rs 390-Rs 392 zone with convincing volumes, otherwise we don’t feel this stock has still bottomed out.


On ITC:
One can go for long in ITC at Rs 100-Rs 105 levels. But it remains to be seen if it will come down to these levels. Depending on one's risk profile, if one is prepared to see downside about Rs 100-Rs 105, one could initiate a long position in it.


On ACC:
The cement counters indeed have lost their momentum. ACC was quite disappointing and the way it collapsed possibly after that result was not very encouraging. However, ACC has strong support now at around Rs 435 -Rs 438 zone. So long as the stock trades about this zone, even now there is still hope for revival.

On Grasim:
The relative strength of Grasim’s chart is much better than that of ACC. Stock is looking good on declines. If one could get the stock somewhere between Rs 1050- Rs 1070, could be a good opportunity.

On Reliance Capital:
One can say the worst is over for Reliance Capital if the stock is able to stay convincingly over Rs 385 levels with good volumes. The big break out for it would be around Rs 410. Infact, between Rs 385 and Rs 410, it has multiple supports. Under no circumstance should Reliance Capital break Rs 355 levels.

On Tisco:
Tisco is unfortunately not able to sustain above the Rs 375 zone. And unless Tisco is able to sustain above Rs 370-Rs 375 levels, it cannot get into an up trend. Infact it is slowly drifting. The scary possibility of Tisco going to test Rs 335-Rs 340 levels, is now emerging on the scene.

On TCS:
TCS is just about managing to stay above Rs 1390-Rs 1395, which is a good support zone. Unfortunately, if TCS breaks Rs 1390 level then it will start turning weak. TCS is one of the relatively stronger shares. A decisive break below Rs 1390 could signify the possibility of TCS even going down to Rs 1325-Rs 1330 levels. And when this happens suppots will suddenly vanish.