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This stock skyrocketed 15 per cent last week, accompanied by extraordinary weekly volume. This surge could be in anticipation of the stock delisting. The Swedish parent, AstraZeneca Pharmaceuticals AB, holds 90 per cent stake in the company. The company has to now either increase the public shareholding to 25 per cent or de-list.
The stock found support in its key long-term base at around Rs 1,550 in late July this year and started moving higher. Last week’s rally has decisively breached the stock's moving average compression (21, 50 and 200-day moving averages) at around Rs 1700.
But the stock is currently testing key resistance level at Rs 1,900, which has to be surpassed conclusively before it can resume its upward journey to the Rs 2,032 levels in the ensuing weeks. Next important resistances for the stock are positioned at Rs 2,272 and Rs 2,600. Near-term supports are at Rs 1,742 and 1,660. A significant fall below the important base at Rs 1,550 will pull the stock down to Rs 1,480 in the medium-term.
Standard Chartered plc (Rs 97.4)
The Indian Depository Receipt (IDR) of Standard Chartered plc moved into the lime light on August 7 when it tumbled 20 per cent, knocking the lower circuit limits. New York’s banking regulator threatening to strip the bank of its state banking licence on allegation that the bank had hidden $250-billion worth of transactions with Iran was the reason behind the stock’s decline. But the stock did a volte-face in the next session and has been on a short-term uptrend since then.
The stock has gained 10 per cent in the last two weeks, backed by good volume. It is also trading well above its 200-day moving average. Nevertheless, the stock is facing resistance in the band between Rs 100 and Rs 102 (floor of the gap formed in June 2011). Only an emphatic breakthrough of this resistance will accelerate the stock to Rs 114; ceiling of the gap was formed in June 2011. Next important resistance for the stock is at Rs 125.
But failure to rally above Rs 102 will confine the stock in the Rs 85- Rs 105. Plunge below the lower boundary at Rs 85 will pull the stock down to the next support at Rs 75.
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