Lanco Infratech - technicals

Investors with medium-term perspective can consider buying the stock of Lanco Infratech (Rs 68.4).

The company owns and operates independent power projects and is also active in EPC (engineering, procurement and construction) and property development.



After forming a strong base at Rs 10 in early 2009, the stock started to trend upwards. Since then, it has been on steady long-term uptrend, shaping higher peaks and troughs.

Moreover, medium-term trend is also up from its February low of Rs 40.8. Both the long and medium-term uptrend-lines are intact.

The stock gained more than 8 per cent last week, conclusively breaching the long-term resistance band between Rs 60 and Rs 65.

Currently, it is trading way above its 21- and 50-day moving averages.

The daily relative strength index is featuring in the bullish zone and weekly RSI has just entered this zone from the neutral region. Likewise, both daily and weekly moving average convergence divergence indicators are hovering in the positive territory reinforcing the bullish momentum.

Our medium-term forecast on the stock is bullish.

We believe that Lanco Infratech has the potential to trend upward to our price target of 83 in the approaching weeks. Investors with medium-term perspective can consider buying the stock with stop-loss at Rs 76. Short-term traders can buy the stock with a target of Rs 75.5. Short-term stop-loss at is Rs 65.

Follow up- Man Industries (Rs 88)

The stock moved up in line with our expectation.

It achieved our short-term target of Rs 93 and then marked fresh 52-week high of Rs 95.8 on June 14. Thereafter, the stock started to decline witnessing selling pressure.

Short-term traders should desist trading in the stock. We re-affirm our positive medium-term outlook on the stock. Investors can stay invested with the medium-term target of Rs 102 and revised stop-loss at Rs 80.

via BL