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


I purchased McNally Bharat Engineering Company at Rs 360. Please advise
short- and long-term outlook of the stock. N. Selvarajan


 McNally Bharat Engineering Company (Rs 297.60): Since March 2009, the stock
has been on a steady long-term uptrend. However, marking an all-time high of
Rs 385, the stock started to decline and has been on a short-term downtrend
since then.

The stock fell 11 per cent last week, penetrating its long-term uptrend line
conclusively signalling cautiousness. At this juncture, investors can take
partial profits off the table as the downtrend is likely to prolong further.

A decline below Rs 270 can pull the stock lower to Rs 240 or Rs 210 in due
course. As long as the stock trades below Rs 330 the short-tern trend
remains down. An emphatic move above Rs 330 would mitigate the negative
short-term view and can take the stock higher to Rs 380.

Long-term investors can stay invested with deeper stop-loss at Rs 190

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