Date:25/10/2009 URL: http://www.thehindubusinessline.com/bline/iw/2009/10/25/stories/2009102550160900.htm

Back Chart Focus: Pidilite Industries (Rs 166.3): Buy

Investors with medium-term perspective can consider buying the stock of Pidilite Industries. After taking support at Rs 80 in March, it has been on an intermediate-term up trend. In May, the stock conclusively penetrated its long-term down trendline that was in place since November 2007 peak of Rs 220. Thereafter, in July, it broke through a significant long-term resistance level of Rs 130 and continues to trend north. The counter is trading well above its 21-day and 50-day moving averages. We also observe an increase in volume over the past three sessions. The daily and weekly momentum indicators are signalling bullishness.

We believe that in medium-term the stock has the possibility of reaching Rs 214. Investors can buy while maintaining Rs 143 as stop-loss. Short-term traders can buy with a target of Rs 182 and Rs 158 as stop.

— Yoganand D.