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http://www.thehindubusinessline.com/iw/2010/05/30/stories/2010053051300900.htm
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*Sesa Goa (Rs 373.8) *

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Sesa Goa turned red hot on Friday as market participants decided that the
recent sell-off was excessive and Chinese demand was unlikely to wane
anytime soon. The stock spiked to the high of Rs 375 on Friday to record
gain of over 20 per cent from its intra-week low of Rs 303.

The stock was one of the outperformers of 2009 as it surged past its May
2008 peak of Rs 219 in July last year and went on to more than double from
those levels. One leg of the bull phase that began in November 2008 has
however ended at the April peak of Rs 494 and the stock is currently
correcting the entire move from the low of Rs 60. Minimum retracement
support for this down-move is at Rs 330. The stock rebounded from the low of
Rs 304 last week. Investors with medium-term time frame can hold the stock
as long as it trades above Rs 300. It can rally to Rs 390 or Rs 420 in this
time-frame.

The outlook for this stock will deteriorate only on a close below Rs 300,
paving the way for a decline to Rs 278 or Rs 227. Long-term target on a
close above Rs 500 is Rs 735 though the stock could spend a few months in
the band between Rs 300 and Rs 500 before attempting a break-out.
*Khaitan Electricals (Rs 105.2)*

This stock whirred with gusto last week and flew from the low of Rs 74
recorded last Tuesday to the high of Rs 106.5. This stock is in a structural
downtrend since March 2006 and it reached a nadir in December 2008 at the
low of Rs 27. The rally that began from March lows last year was thwarted at
Rs 121 and the stock has once again been slipping downward. Key medium-term
support for the stock is at Rs 63 from where it rebounded in December 2009.
Investors can hold the stock as long as it trades above this level.

The stock is however testing its key medium-term resistance at Rs 106.
Reversal from here can result in the stock vacillating between Rs 60 and Rs
100 for few more months. Conversely, a move above Rs 106 can take the stock
higher to Rs 121 or Rs 140. — Lokeshwarri S.K

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