Date:13/02/2005 URL: http://www.thehindubusinessline.com/bline/iw/2005/02/13/stories/2005021301110700.htm

Back Focus of the week

B. Krishnakumar

Aztec Software (Rs 89.7): The stock is in a long-term upward trend. In Elliott Wave terminology, the stock appears to have completed one segment of an impulsive move at Rs 74.55 in November 2004. The protracted sideways action since then would qualify as a correction to the earlier upward move.

In Elliott Wave parlance, the recent upward move could be Wave 1 of a new five-wave impulsive move. After a short-term correction, the stock could get into the Wave 3, which has significant upside potential.

The stock could move to the Rs 125-130 range in the near term. This view would be valid as long as the stock holds above Rs 71. Hold with a stop-loss at Rs 71. Fresh buying may also be considered on price weakness, with a stop-loss at Rs 71.

SAIL (Rs 64.7): After hitting a low of Rs 22.3 in June 2004, the stock appears to have commenced the next leg of the impulsive move. A move above Rs 67 would confirm the bullish outlook and would push the stock to the Rs 78-80 range.

Investors willing to wait for a longer time frame may find opportunities to exit at the Rs 100 level. The positive outlook would be valid as long as the stock trades above Rs 52. Investors who have entered at lower levels may hold with a stop-loss at Rs 52. The rest may hold with a stop-loss at Rs 59 for a portion of the holding and at Rs 52 for the balance.