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Following the open offer announcement on Monday, the stock skyrocketed with an upward gap, gaining 17 per cent accompanied by unusual volumes. Thereafter, it started moving sideways testing its medium-term resistance at Rs 850. The stock is currently hovering well above its 50 and 200-day moving averages. The daily relative strength index is hovering in the bullish zone and weekly RSI (relative strength index) has just entered this zone. Strong close above the resistance of Rs 850 will lift the stock higher to Rs 900 in the short-term. On the downside, close below its immediate support (ceiling of gap formed on last Monday) at Rs 828 will pull the stock down to Rs 790 and then to Rs 750.
Unitech (Rs 43.1)
The stock nose-dived 15.5 per cent with above average weekly volumes last week. Since the October 2010 peak of Rs 98, the stock has been on a medium-term downtrend. It is trading way below its 50 and 200-day moving averages. Both the daily and weekly relative strength indices are featuring in the bearish zone. Immediate support for the stock is at Rs 40. We expect the stock's decline to prolong further and test this support in the days head. Decline below Rs 40 will pull the stock to Rs 35 in the weeks ahead. However, reversal from Rs 40 can take the stock higher to Rs 46 and then to Rs 50 in the short-term. Next key resistance is at Rs 60. Medium-term downtrend will be mitigated only on a strong weekly close above Rs 67.
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