B. Krishnakumar

Century Textiles (Rs 260.6): After being confined to a narrow range, the stock has managed to recover ground in the recent weeks. The long-term outlook is bullish. A move to the Rs 310-320 range appears likely. The positive view would be valid as long as the stock holds above Rs 220. Long-term investors may settle for a stop-loss of Rs 220.

Though the long-term outlook is bullish, the stock could rule weak in the near term. A drop to the Rs 250-253 range appears likely. Price weakness may be used to take fresh exposures, with a stop-loss at Rs 240.

Cosmo Films (Rs 83.6): The price pattern during 1999 to 2003 has unfolded into a perfect impulsive wave pattern in Elliott Wave terminology. There cannot be a better depiction of this pattern with the price subdividing into a neat five-wave pattern.

The stock has been in a corrective phase since mid-2003, which appears to have been completed a few weeks ago. The stock is in the early stages of the explosive Wave 3 in Elliott Wave parlance. If this view is valid, the stock could zoom to the Rs 125-130 range shortly. This would be negated on a close below Rs 51. Investors may remain invested with a stop-loss at Rs 50. Fresh buying may also be considered on weakness, with a stop at Rs 50. A weekly close above Rs 86 may be used to enhance exposures with a stop-loss at Rs 75.

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