ACTION CONSTRUCTION EQUIPMENT LTD; ALERT

              CMP  38.35            BSE 18428

• The Stock has been closing above a key resistance level of 38.05 for the last two trading sessions.
• A few more such closings would make it ripe for the next upmove to approx 40.5 levels where it faces another key resistance.
• A few closings above 40.5 would then set the Stock up for the next target 43.
• If the overall Mraket sentiment remains upbeat, one could easily get target 43 pretty soon.
• I would put a conservative 6 month target at 51 levels.
• Fundamentally, the Scrip is good even though Q3 FY2012 numbers have been a bit of a downer.
• The Stock seems to be a late bloomer and it has underperformed its infra peers in the current one and a half month old buying frenzy so it could be ready for a little catching up upmove now.
• In my opinion, the Scrip is a BUY at cmp for long term investors.

ACE Q3 FY2012 RESULTS  SEE HERE
EARLER POST ON ACE DTD 6/12/2011 SEE HERE