am holding shares of Rain Commodities at Rs 200. What is the outlook for
this company? Please advise whether I should continue to hold it. Suhas Pai


 Rain Commodities (Rs 138.5): After recording a 52-week high of Rs 255 in
January 2010, the stock reversed direction and has been on a medium-term
downtrend. While declining, the stock decisively broke through key long-term
supports at Rs 200 and Rs 180.

It is currently testing yet another important support level of Rs 135.
Strong decline below this support will probably pull the stock lower to Rs
110 in the medium-term. A tumble below Rs 110 would eventually drag the
stock to Rs 90 or Rs 70 in the long-term.
On the other hand, a reversal from the current support level would be
short-lived and the stock is not likely to rally beyond Rs 160. We suggest
an exit from the stock in rallies. Resistance above Rs 160 are at Rs 170 and
Rs 180

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

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