Friday, April 11, 2008

Five India stocks that are likely to do well in short term

Blue Bird (India):

Blue Bird (India) has lost around 67% from the previous high at 93.50. It has formed a descending channel pattern and a bullish breakout was achieved yesterday. It has technical targets of 47.50 and 55.90 in the short term.

Gwalior Chemical Industries:

This stock has also formed a descending channel pattern and it has fallen badly from its high at 127 made three months ago. Minor resistance exists at 58.80 and once this is broken it is expected to touch 70 and 84.50.

Nucleus Software Exports:

While everyone seems to worry about rising rupee, falling dollar, US recession etc. the marketmen seem to think otherwise. This stock has formed a classic "falling wedge pattern" in daily charts. This pattern is a reliable bullish pattern that takes around 3 months to form. The upper and lower resistance trendlines converge to form the wedge and the bullish breakout can be confirmed with yesterday's volume. Once the stock crosses 291 we may think of another target of 317.

Pitti Laminations:

Like Nucleus Software Exports, this has also formed a falling wedge pattern. While breakout volume is not as high as Nucleus it is still above average. This stock has technical targets of 54 and 66.

Tech Mahindra:

During January 2007 this stock touched a high of 2048. However, the next 12 months saw the stock losing more than 70% of its value as it got plundered to a low of 575 on January 22 this year. After a two month consolidation pattern the stock has broken its resistance at 814 with very good volumes. The stock is expected to achieve a bullish target of 991 in the short term.