Sizzling Stocks: Jain Irrigation Systems, Lanco Infra

Jain Irrigation Systems (Rs 157)

After touching its 52-week low at Rs 128 on June 20, the stock found support around this level and bounced up. It has surged 11 per cent in the previous week with good volumes. But the stock is currently testing twin resistances at Rs 160, a key medium-term resistance and down also trend-line. An emphatic break out from this resistance in the near future can lift the stock higher to Rs 185 and then to Rs 200. Conversely, downward reversal from Rs 160 can pull the stock down to Rs 145 or to Rs 130 in the short-term.

The stock has been on an intermediate-term downtrend since its August 2010 peak of Rs 264. As long as the stock trades below Rs 210, this intermediate-term downtrend remains in place.

Lanco Infratech (Rs 22.9)

The Lanco Infratech stock’s downtrend accelerated after it nose-dived 23 per cent last week. It had decisively broken through its key long-term support level at Rs 27.5 levels. Since attaining its peak of Rs 73 last October , the stock has been on an intermediate-term downtrend. Medium and short-term trends are also down. The stock’s daily as well as weekly indicators are, however, reaching oversold territory. We don’t rule out a near-term corrective up move in the. The stock can rally to Rs 25 and then to Rs 27.5. Failure to move above Rs 25 will pull the stock down to Rs 20 in the medium-term. Key supports below this level are pegged at Rs 17 and Rs 15.

As long as the stock trades below Rs 35 its short-term trend remains down; only a strong rally above this level will reverse the downtrend.

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