IVRCL - UPDATE

CMP 46.9   BSE SENSEX 16030

We live in troubled times with the Markets bleeding again, much as they did in December 2011, and the fetid vapour of gloom and doom is in the air. Be that as it may, we need to keep our wits about us and look at the possibility of accumulating select stocks for the long term. Hence, this Post.

• In an earlier Post (SEE THIS), when IVRCL was at 57, we had set out important support levels as 55, 51.5 and then 46. We had determined that 46 seems to be a strong support being the confluence of a couple of DMA based and Fibo retracement based levels.
• On 14/5/2012, in the current down, 46 was violated on a closing basis with the closing at 45.10.
• However in the past two sessions there has been a recovery of sorts in the Scrip nad 46 closing has not been violated again, thus far.
• This leads one to harbour hopes of this level holding out. Of course, in another panic sell-off we might live to eat our words on this one.
• Below 46, the next support is at 42.6 and then at 38. This is followed by 32 and then by the horrendous level of 27 which also was the all time December 2011 low for the scrip.
• The best one can do, as I have always maintained, under the present kind of circumstances where Markets turn on a razor's edge, is to buy in phases at known support levels for stocks that one believes in.
• So, if IVRCL per chance is your fancy, you may look to keep the aforesaid support levels in mind while planning entry or accumulation in the Stock.