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June 02, 2005
Ballarpur Industries - headed for 140

A recent addition into the f&o list, BILT has been surging as the price graph below indicates. Currently at 9 year highs, the scrip is making an interesting chart pattern - elliot wave enthusiasts would identify with. Dow enthusiasts will note the inverted head and shoulders formation on the monthly chart ( not enclosed in this report ) which co-incides with the target objective of the elliot theory. With these two strong triggers, we recommend a buy on the scrip with a 2 - 3 month view. A stop loss would be advisable at the 110 - 112 levels.

While a 140 target is a conservative objective, the next impulse move is likely to propel the scrip even higher. We'll keep you updated on this story frequently.

 
Ballarpur Inds - Weekly chart  BILT factfile

1) Wave # 1 commenced on weekended April 04 2003 @ 36.05 levels and terminated at 87.75 on weekended Jan 02 2004. A net gain of Rs 51.70

2) Wave # 2 commenced at 87.75 on weekended Jan 02 2004 at 87.75 levels and terminated at 55.60 on weekended July 09 2004. A loss of 32.15. Exactly 0.618 % retracement

3) Wave # 3 commenced at 58.50 levels and is still in force with a conservative target of 142 on the weekly charts.

4) The directional oscillator is showing a strong bullish bias on the counter as the scrip is moving along the bullish trendline ( wave 3 ) and has support at 109 - 110 levels.

 
Your call of action

Buy in the cash / futures segment as per your risk appetite and hold with a stop loss at the 110 levels. For every 5 Rupee gain in the price, keep revising the stop loss higher by Rs 3 as that will protect your capital beyond the 130 - 135 space.

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Have a profitable day.
 
Vijay L Bhambwani
Ceo :- Bsplindia.com

The author is a Mumbai  based investment consultant and invites feedback at Vijay@BSPLindia.com and  ( 022 ) 23438482 / 23400345.

SEBI disclosure -  The author has no positions in  the stocks mentioned above.

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