Sasken Communications

We recommend a buy in Sasken Communication Technologies at current market price. From the weekly chart of Sasken Communication Technologies it is clearly evident that it had been on a long-term downtrend between June and November 2007 (from a high of Rs 584 to a low of Rs 250). However, the stock found support around Rs 250 in mid of November 2007, which is a historically key support level and began to trend up. During the course of this up-trend, the stock crossed over th We 21-day and 50-day moving average line and later penetrated a significant resistance level of Rs 305 during end of December 2007. We notice that volumes are rising for the past one week. The daily momentum indicator is featuring in the bullish zone and the weekly momentum indicator has recovered for the oversold region. The daily moving average convergence divergence is progressively rising in the positive region. The immediate support for the stock is at Rs 310 and the next support is at Rs 250 levels. The short-term investors can buy the stock with stop at Rs 310. We expect the stock rally up to the resistance level of Rs 395 in the short-term.

Via BL