Micro Technicals

Watch out for TVS, Bajaj

Both the auto stocks could move up, but stick to stop-losses

TVS Motors

Current price: Rs 525

Target price: Rs 570

The stock has broken upwards from a recent trading range. Volumes have expanded with the breakout. There is the projected target of around Rs 570-575. However, this may take several weeks to achieve. Keep a stop-loss at around Rs 512. Expect sudden sharp volatility changes.

Bajaj Auto

Current price: Rs 521

Target price : Rs 545

The stock has just risen on high volumes after completing a bullish saucer formation. The robust quarterly results also improved the sentiments at the counter. The projected target would be around Rs 545. There is a bit of downside risk. The nearest reliable support is around the Rs 510 level and if that is breached the stock could react down to around Rs 488. It would be a very generous stop-loss around Rs 510.

CMC

Current price: Rs 597

Target price: Rs 650

The stock has risen out of a bullish formation with a high volume pattern. The normal projected target would be somewhere between Rs 650-665. Let's be conservative and suggest the taking of partial profits at around Rs 650 if that price level is attained. Once again, there is an element of risk. If the formation breaks down, prices could slide right back to the Rs 565 mark or even lower. This is a very loose stop-loss. Diurnal variations of +/- 30 is easily possible since this stock is volatile.

Ranbaxy

Current price: Rs 636

Target price: Rs 730

The stock has started a breakneck climb. The target projection looks fairly reliable on the basis of an excellent chart pattern and strong volumes. There is likely to be several sharp intra-day reactions, however, before the stock achieves those targets. Keep a stop-loss at around Rs 630. There is resistance around Rs 670 so book partial profits once that price is attained.

Siemens

Current price: Rs 323

Target price: Rs 305

The stock continues to show a strong turnaround. It has been moving up on a steep trendline of around 45 degrees. Look for a reaction in the recent future to around the Rs 305-310 range and then enter. It's difficult to project future targets from this pattern but the stock looks worth holding at least until the Budget.