MEDIUM TERM TECHNICAL CALL                                         20/04/2012                                                                   

Divis Lab

835

                                                                  

VIEW	BULLISH
REMARK	Pattern breakout with good Volumes
TARGETS	1250-1500
SUPPORTS	(800)-780-(765-740)
STOP LOSS	Two consecutive Close below 740.

COMMENTARY

The stock made a top around 965, in Jan 2008, followed by a corrective till 382 in March 2009.

It rallied to 798 thereafter in July 2010.

A Higher bottom followed at 582 and the stock crossed the intermediate high of 798 in July 2011 followed by a correction and consolidation phase.

Recently the stock has given a pattern breakout with sufficient volumes, making a new high of 856.

Basically the stock has opened for bullish up move .Possible levels are 1250-1500.

Supports are at (800)-780-(765-740).

Two consecutive closes below 740 negates the above view. The Indicators are in positive mode.

The stock is crossed its 200 DMA in March 2012 backed by huge volumes and steep rise, which suggest an informed buying in the stock.

At present the stock is trading in overbought territory and should be accumulated on declines.

The Trend Indicator is in Positive Mode. A move backed by fast momentum can be expected in coming days.

Certainly a stock to watch for decent returns in 2012.

b_gala@ventura1.com