HIGH BETA INFRA; IMPORTANT SUPPORT LEVELS

Since the Markets are rather delicately poised and could go either side of the 5130 to 5250 range that has been the trading zone hitherto in evidence, I thought that it would be a good idea to enlist the important support levels for some of the high beta favourites, so that Readers / Investors could take possible investment decisions accordingly.

• LANCO (CMP 13.9): The zone 11.81 to 12.05 is a strong support zone for the scrip based on a combined view of the 2/3 rd retracement line and the Fibonacci series. Going by todays price performance, although a truncated session, this zone should hold. Remember, all the levels talked about here are on 'closing basis'. So interested Investors could look to accumulate in this zone, with a reasonable degree of safety.
• JP ASSOCIATES (CMP 72.95) : The 50% retracement levels are at 70 approx and a combination of the Fibo as well as 2/3 rd retracement levels gives a lower support zone of 64-66. So, the broad range 64 to 70 should be a strong support zone. Investors could accumulate accordingly in small lots at various points in the 64-70 zone.
• GMR INFRA (CMP 27.7) : The stock has seen somewhat lesser erosion and in my opinion, the 23 to 25 zone should act as a strong support zone. This roughly corresponds to the zone between the 2/3 rd and 50% retracement levels. Were this to break then the next strong support would be at 20.5 levels. So, investors could look to accumulate in the 23-25 zone with reasonable safety.
• GVK POWER (CMP 15.95) : Here, the 50% retracement level at 14.7 seems to be a very good support. Below this the next Fibo retracement support is at 13.45. So, investors could look to accumulate in the 13.45 to 14.7 zone with reasonable confidence.

I will take up some more stocks for similar analysis in my next Post. Meanwhile, in case readers would like any other particular stocks analysed similarly, please let me know through the Comments space.