Sizzling Stocks - Bajaj Finserv: (Rs 629.2)



Bajaj Finserv skyrocketed 18 per cent with extraordinary volume to register a new 52-week high at Rs 689 on Wednesday. But, even as it gave away some gains in that session, the stock has jumped almost 9 per cent with good weekly volume last week. It is currently testing important long-term resistance at Rs 650. The long-term trend is up for the stock ever since bottoming out at its December 2008 trough of Rs 88.6. Strong weekly close above Rs 650 will lift the stock higher to Rs 700 and then to Rs 800 in the long-term.

On the other hand, inability to move above Rs 650 can pull the stock down to Rs 585 or to Rs 565 in the ensuing weeks. Key support below Rs 565 is at Rs 540. As long as the stock trades above Rs 500 its medium-term uptrend remains in place.

DLF (Rs 203.2)

After testing significant long-term resistance at Rs 250 in mid-February 2012, the stock started to decline. It is once again back to its intermediate-term sideways consolidation phase in the broad range between Rs 175 and Rs 250. In the last week, the stock plunged 10 per cent with good volume, penetrating its key medium-term support at Rs 220 and also its 200-day moving average poised around Rs 215. An emphatic slump below Rs 195 will pull the stock further down to its lower boundary of the sideways consolidation range at Rs 175 in the medium-term.

Only a decisive move above Rs 235 will alter the ongoing short-term downtrend and take the stock higher to Rs 250 in the same time frame. Short-term supports are at Rs 197 and Rs 185. Resistances are at Rs 215 and Rs 225.

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