Date:30/10/2007 URL: http://www.thehindubusinessline.com/2007/10/30/stories/2007103051971700.htm

Back Today's Pick: Birla Corporation (Rs 351.90)

We recommend a buy in Birla Corporation at current levels. From the weekly chart of Birla Corporation, we note that following a steep decline from the January high of Rs 375, the stock found support in late March at Rs 180. Since then, the stock has been on a long- term uptrend marking higher peaks and higher troughs. In mid of October, the stock met with a significant resistance around Rs 375 and tumbled. However, we see that the stock has found support around Rs 300 and appears to have resumed the long-term uptrend by penetrating the 21-day moving average recently. The immediate support for the stock is at Rs 300 and the next support is at Rs 260. The weekly momentum indicators are showing continued bullish momentum. Short-term investors can buy the stock with stop-loss at Rs 330. We expect the stock to rally to Rs 420 level in the short-term, with a small pause around Rs 375.

Yoganand D.