to r ’s Focus
Inves
Videocon Industries
Indian Markets had a magnifi-
cent run in the past one month.
The benchmark indices gained
over 12% in last 30 days. The
valuations have gone somewhat
high and it is a period of uncer-
tainity when it comes to enter-
ing into fresh positions. Also,
Ramjanamabhoomi-Babri masjid
verdict may cause hiccups in
the stock markets. However we
would rely on technical charts
to pick new stocks keeping a
tight stop-loss for each pick.
FUNDAMENTALLY SPEAKING
Foray into mobile phone sector
creates another avenue for
Technically Speaking
The candlestick pattern for price
chart indicates strong short term
uptrend.
Commodity Channel index sharply
rising above 0, 100, 200 & 300 lev-
els
-Madhukar Das
sales generation apart
from the traditional con-
sumer electronics business.
Last year Videocon amalga-
mated with Petrocon, the
sister oil firm which is cash
rich. Now Videocon Indus-
tries Ltd has two major
foreign oil assets under its
belly – one at Brazil and
the other at Oman, over
and above what they al-
ready have in India. The
cash flows of the oil busi-
ness will complement the
cash needs of the acquisi-
tions in the high volume,
consumer electronics busi-
Momentum crosses above 0
may reach 10%.
Sharp rise in volumes helping
short term upmove of the
scrip.
Volume 1, Issue 2
-September 28, 2010
Other Picks
ness. Completed acquisi-
tion of the complete
BUY :
Colour Picture Tube op-
erations of the Thomson HCL Infosystems
group and the Indian
CMP—`118.10
operations of Elec-
trolux, Target—`129.90
P/E is 13.55 , lower Stop Loss—`112
than industry average.
Book value has been
rising steadily over past Sell :
4 years. Punj Lloyd
Fundamentals are strong CMP—`131.35
for the company.
Target—`118
Stop Loss—`138
Polaris Software
CMP—170
Target—`153
Stop Loss—`177
Special points of
interest:
MACD about to cross MACD Since we are looking
signal line from below, indicating at a trading horizon
short term upmove. Stochastic of 15-30 days, we
shall give more
also suggesting short term
weightage to technical
gains.
analysis and price
trend of the stock.
We shall also study
Recommendation : BUY the fundamental as-
pects of a company to
Price : `280 avoid getting into loss
making trade positions
Target : `308 in case of movement
Stop loss : `268 of market in direction
opposite to that of my
prediction.
Note : If goes below `268, can enter
again at `260