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B. Krishnakumar

Bombay Dyeing (Rs 351.5): The outlook for the stock was covered a few weeks ago (edition dated February 6). The stock has moved well past the target zone that was mentioned earlier. The stock appears to be in the Wave 3 of 3 in Elliott Wave parlance.

Despite the recent upward spike, there appears to be a lot of ground to be covered on the upside. Investors willing to wait for a while may get opportunity to exit at the Rs 395-400 range. Holders of long position may remain invested with a stop-loss at Rs 309. Fresh exposures may also be considered on intra-day weakness with a stop-loss at Rs 309. The positive view would be negated if the stock closes below Rs 309.

Ballarpur Industries (Rs 107.2): The stock moved past the strong resistance zone at Rs 86 a couple of weeks ago. As it is typical in any major breakout, the stock dropped to retest the earlier resistance zone, which would not act as support area. The stock took support at this zone and has bounced sharply.

The near-term trend is bullish and a move to the Rs 135-140 range appears likely. The positive view would be in force as long as the stock holds above Rs 95. A close below Rs 95 would negate the positive outlook. Long positions may either be considered on price weakness, with a stop-loss at Rs 95 or on a close above Rs 110, with a stop-loss at Rs 100.

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