Technical Analysis – Amtek Auto
Since December 2009, Amtek Auto was declining from the key medium-term resistance at Rs 220. The failure to surpass this hurdle could result in the stock vacillating in the band between Rs 220 and Rs 100 for few more months.
The stock was unable to move above Rs 200 since then and it declined to the low of Rs 110 in December last year. We stay with the view that long-term investors can hold the stock as long as it trades above Rs 100.
Since the stock has strong long-term support in the band between Rs 100 and Rs 110, investors can buy the stock close to Rs 100 with stop at Rs 90.
Fresh purchases are however not recommended on a close below Rs 90 since that would usher in a deeper decline to Rs 50. Medium-term targets for the stock are Rs 190 and Rs 240.
Long-term view for the stock will turn positive only on a strong close above Rs 250. Subsequent targets for the stock are Rs 270 and Rs 320.
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