Garware Polyester

The stock is trading at 173.10 on 5-1-2011 after the correction of almost 61%. The stock is showing potential to go up. The stock has taken the support at 200 day simple moving average. The short term resistances are posed by the 50 day and 100 day moving averages at the levels of 193.39 and 208.87.

The MACD has crossed above the signal line and RSI is rising above 50 level at 52.77. The +DI has crossed above the -DI. The ADX is rising and at 29.95. All this indicate that the stock has gained potential to rise.

The market cap of the stock is 401.71 Cr.The PE Ratio of the stock is 5.23 and that of industry is 12.92 . The EPS(TTM) of the stock is 33.30. The quarterly financial results ending September 2010 are satisfactory.

Recommendation:

Buy this stock for a target of 193 and with stop loss of 167 for short term.

Buy this stock for a target of 273 and with stop loss of 157 for medium term.

BSE Mid Cap Index-MIDCAP

The BSE Mid Cap index, MIDCAP has broken through the resistance of 7669.64 and trading above 200 day simple moving average. It has started to rise after a correcton. The MACD has crossed above the signal line but still is below the zero line. The RSI is also rising and is at 48.13. The +DI has crossed -DI in above direction, all these are bullish signs. The only major combined resistance posed by 50 and 100 day simple moving average is at 8041.04. From level 7669.64 to 8041.04 i.e. 4.84%, there is no resistance, One can trade safely in this period in selective mid cap stocks. After this level is broken then the bulls will be in dominance.