SIMPLEX INFRASTRUCTURE LTD; STOCK CALL

                                       CMP 200                  BSE 16996

In keeping with the tone and tenor of the changing Economic Macros our Call today is on SIMPLEX INFRASTRUCTURES LTD.:

• On the upside, resistances are evident at 210 followed by 232 and then a stronger one at 250.
• On the downside, supports are at 190 followed by 181 and then a solid support in the 160-165 band.
• The trend on the Price Charts is a tad sideways but with a definite positive bias.
• Fundamentally, without too much of hair splitting, one can be reasonably assured of the quality even though the high debt on Books is a bug-bear but then one would be hard pressed to unearth many Cap goods/Infra Companies without a high Debt profile in today's times.
• The softening of the Rate Regime should be the game-changer.
• The Stock has run up appreciably Calendar YTD so a little caution is advisable. The other sore point is the pathetic volumes but one will have to take that in one's stride.

Overall, in my opinion, long term Investors can enter the Stock on dips and hold for the long term for good returns.