Buy Century Textiles; target of Rs 375- 380: PINC Research

PINC Research is bullish on Century Textiles and has recommended buy rating on the stock with a target of Rs 375 -380 in its March 13, 2012 research report.

CENTURY TEXTILES:
Price Breakout post sideways move: Century Textiles after rallying smartly since the start of the year has consolidated for the last few weeks. Yesterday, it attempted a high above Rs 324, thereby attempting a breakout. Continuing to stay above Rs 320 could catapult the next leg of its upmove.

Positive Crossover in Oscillator: The medium term momentum (Stochastics) indicator is recovering from oversold levels. It is also above its pivotal trigger line which confirms a positive trend. This is another supporting evidence that the stock may be heading up from current levels.

Technical Commentary/ Observation: Positive psychological indicator coupled with formation of higher top and momentum oscillator indicates positive trend for the stock in the coming weeks. We recommend buying this stock with a target price of Rs 375-380 for the next 2-3 months.

GVK POWER:
Moving Average: GVK Power after rebounding smartly from the lows of around Rs 10 is now trading above pivotal medium term moving averages. This indicates higher prices for the counter over the coming months.

Higher Top: By decisively closing above the level of Rs 18, the stock has formed a higher top on the daily charts. This could translate into continuing positive momentum into the coming week.

Oscillator: The medium term momentum (Stochastics) indicator is recovering from oversold levels. It is also above its pivotal trigger line which confirms a positive trend and could translate into minimal downside on any declines.

Technical Commentary/ Observation: If the counter can sustain above Rs 18, there is a fair probability of this stock advancing in the coming weeks. The factors mentioned above are going to be the supporting factors that can drive the stock towards the price of Rs 25 over the next 2-3 months.

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