Asian Paints: Hold and sell on rally

Recommendation: Hold and sell on rally

B. Krishnakumar

THE share price of Asian Paints has been on an uptrend in recent months.

After touching a low of Rs 205 in October 2000, the share price staged a recovery in recent weeks. The scrip appears to have completed the first leg of the rally that commenced in October 2000.

Asian Paints now appears to be in the midst of a correction. It found support at the earlier low of Rs 260 and managed a small recovery. A move past Rs 275 in the next few days would impart a positive trend in Asian Paints and it could move on to the next target price of Rs 330.

Alternatively, a decline below Rs 260 would negate the positive outlook for the stock. In such a case, existing holders could gradually trim their exposures in the company.

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