Bullish stocks for the week

Crompton Greaves:

After touching a high of 452 during November 2007, this stock has fallen to 265 on February 12. The first wave was complete with the stock reaching 323.90 and then a corrective decline started. On February 25, a near “hammer” was formed indicating that the market is bottoming out. On Wednesday the stock had closed above the previous resistance at 323.90 with good volumes and an upward gap. It has declined slightly after that. However, such declines are only opportunities to enter the market. When the uptrend resumes the stock will face resistances at 378.75 and 407.

Essar Oil:

Essar Oil jumped very quickly from around 50 to 355 in about three months time between October 2007 and January 2008. During the January 2008 stock market crisis this stock fell badly and on January 22 it touched a low of 101.25. However, it has managed to stage a smart recovery since then. On February 29, the stock broke the short term resistance at 254.85 and one can see a triangle breakout on charts. The technical target for the breakout works to be 349.70 which is just near the previous high at 355.95.

KSB Pumps:

Is there “some” relationship between overall index such as Nifty or Sensex and stocks like this one? During the week ending July 6, 2007 this stock touched a high of 650 (close: 594) and for the week ended January 4, 2008 it closed at 444.95. The corresponding close values for Nifty are 4385 and 6274 respectively.

The stock was on an uptrend after it made a low of 296.10 on February 12. The resistance at 357 was broken with good volumes on February 29. One might argue that the consolidation period was too little but since the bullish breakout has been accompanied with an upward gap, we may be worth watching this one. 425 and 477 are the technical targets for the stock.

Varun Industries:

Varun’s IPO price was Rs.60 and got listed on November 22, 2007. It did yield good returns to investors with the scrip making a high of 164.90 on January 8, 2008. It was on a decline since then and on Thursday the previous resistance 96.50 was broken with reasonably good volumes. The stock has technical targets of 118 and 130.