http://www.thehindubusinessline.com/iw/2010/05/30/stories/2010053050150800.htm



What is the long-term outlook of Godrej Industries bought at Rs 169? Rajesh
Mishra


 Godrej Industries (Rs 149.5): After a 36 per cent retracement of the
stock's previous downtrend (from December 2007 peak of Rs 504 to November
2008 low of Rs 46), it encountered a resistance at around Rs 220 in October
2009. Inability to exceed this level in December 2009 has strengthened the
resistance from a long-term point of view. Investors with long-term
perspective can hold the stock with stop-loss at Rs 112 and with initial
target of Rs 185 and next target of Rs 220.

Since December 2009 the stock has been on a medium-term downtrend and is
just above key support zone of Rs 140-145. A dive below this support zone
will add to the selling pressure and the stock can find support at Rs 120 in
the medium-term. Immediate resistances are at Rs 165 and Rs 185.

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