Thursday, March 1, 2012

HINDUSTAN CONSTRUCTION COMPANY LTD; STOCK ALERT


CMP 29.75          BSE 17583

In this Post we shall examine another very interesting Chart where I see a good positive opportunity. The Scrip is HCC Ltd.
  • Readers of this blog may recall that on 15/1/2012 (SEE THIS) I had taken a view that there exists a strong resistance for the scrip at 24 levels. The Market Price then was 21.5.
  • It is interesting to note that the Stock took out 24 levels on a closing basis on 1/2/2012 and more importantly, ever since 1/2/2012 has consistently traded above it except for one day (7/2/2012)when it closed at 23.6.
  • Now we can say with more than reasonable conviction that 24-25 levels will be a good medium to long term base for the Scrip.
  • In fact I would stick my neck out a wee bit more and venture to say that 27 too seems a good support, not having been violated on a closing basis, other than on a couple of days, in the last 15 days.
  • What I am now looking for are a few closings above 29 which would put the Scrip firmly on the path towards 34.
  • So remember the closing basis levels 24, 27, 29 and look for a short to medium term target of 34.
  • Long term investors can safely buy in the 24-29 zone and hold for great gains over a one year period.

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