Mercator Lines (Rs 46.1): In our review of this stock in November 2009, we
had mentioned that Mercator Lines was moving in a range between Rs 40 and Rs
75 and that as long as the stock held above the lower boundary of this
range, there was a possibility of a break-out to Rs 84 or Rs 105 over the
medium-term. This view remains unaltered.

The lower boundary has not yet been breached though the stock tested this
level briefly in June to record the low of Rs 42. A nascent uptrend is
currently in motion that utterly lacks conviction. Investors therefore need
to be on their guard as long as it trades below Rs 50. Move above this level
can take it higher to Rs 55 or Rs 62. Medium-term view will turn positive
only on a close above Rs 75.
We reiterate the view that close below Rs 40 would denote an impending
decline towards Rs 21.

http://www.thehindubusinessline.com/iw/2010/07/04/stories/2010070450290600.htm

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