The Hindu Business Line : Focus of the week

Chennai Petroleum (Rs 229.55): After an upward move that lasted till October, the stock has been on an extended period of correction. This phase would fit as an enlarged "bull flag" pattern. The share price moved out of this range on Thursday.

The breakout on Thursday is likely to help the stock move to the target zone of Rs 255-260. Remain invested with a stop-loss at Rs 205.

Fresh exposures may also be considered on a close above Rs 230, with a stop-loss at Rs 218. Partial profit booking may be considered on a move to Rs 260.

KEC International (Rs 195.9): The outlook for the stock has been featured earlier. The share price has moved to the earlier mentioned target zone of Rs 200. The near- term outlook remains bullish. The share price could move to the Rs 235-240 range.

Shareholders may remain invested with a stop-loss at Rs 173. Fresh exposures may also be considered with a stop-loss at Rs 173.

Partial profit booking may be considered when the stock moves to the target zone.

Alternatively, trailing stop-loss may also be used in the event of a move to the Rs 235-240 band.

A close below Rs 173 would negate the positive outlook and would push the stock to the Rs 158-160 range. Evidence of support at this range may be used to take fresh exposures.

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