Subscribe Feed (RSS)Asian Paints- Market Price Rs1210
July 3rd, 2008 by admin | Filed under BSE, short term.Asian Paints has been on a continuous upward journey since mid-2001 when the stock broke out of a
price base of about Rs185 and hit a range of Rs275-Rs345; it remained there till the end of 2004.
It then resumed its upward journey hitting a high of Rs669 in February 2006 and then fell to
about Rs570 at the end of May 2006. Thereafter, it again resumed its northward journey in almost
a straight line till it reached Rsl,246 at the end of January 2008. The stock fell to about
Rsl,11S at the end of February 2008 and then again rose to reach the current levels of Rsl,287.
On the weekly charts, for our purpose of forecasting, one can take Rsl,100 to be the base level.
This was reached in the week ended 22 February 2008. The stock has taken a bit of effort to get out of this level, thus forming what is called a support/resistance zone. From there, it reached Rsl,275 in the week ended 25 April 2008. The next target should be Rsl,400-Rsl,450 in about two months. This is clearly a short- term momentum play. The trader should bear in mind that he is just riding the last phase of a momentum. Keep a strict stop-loss, as the stock has been rising for a very long time and, indeed, a correction is due, probably after the momentum plays Out.
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