Date:08/10/2007 URL: http://www.thehindubusinessline.com/2007/10/08/stories/2007100851300400.htm

Back Today's Pick: Castrol India (Rs 269)

We recommend a buy in Castrol India at current price levels. From the weekly chart of Castrol India we note that the stock has been on a long-term uptrend since July 2006 low of Rs 160. However, after marking a high of Rs 310 in May, the stock gradually declined and found support at Rs 250 in July. Since then the stock has been moving sideways between Rs 250 and Rs 280 levels. The immediate support for the stock is at Rs 250 and the next key support for the stock is at Rs 210. The stock penetrated the 21- and 50-day moving averages recently. The relative strength index, which is momentum indicator, is implying a potential near-term upside. Short-term investors can buy the stock with a stop loss at Rs 258. We expect the stock to move up to Rs 290 in the short term with a minor pause around Rs 280.

Yoganand D

BL Research Bureau