Book profit in Indo Gulf

B. Krishnakumar

THE share price of Indo Gulf Corporation has been on a downtrend in the recent months, after peaking at Rs. 98.70 in October 1999.

The downtrend in the stock does not appear to have ended. The company has just completed an intermediate trend weekly cycle top and has since turned down.

This is an indication that the share price could be headed to lower levels. Meanwhile, in the daily charts, the stock appears set for a short-term rally as the current upward cycle is yet to be completed. Given that the trend in the longer-term weekly chart is down, shareholders could use the opportunity to cut exposures or book profits once the anticipated price uptrend materialises.

(Note: Recommendations in this column are based entirely on the technical analysis of the price behaviour of the scrip concerned. There is a risk of loss in trading.)