IFCI ... a midcap stock which has usually been in news as a takeover target has seen quite a correction from its pre Jan08 level of Rs 121 to the current levels of Rs 60/-.
The scrip is currently moving a 'flag' type pattern oscillating between Rs 55 and Rs.64 for the past 14 trading sessions.
Break out on the upper side is at Rs 64 and the scrip should then target Rs 85 levels. Keep a stoploss at 56/- (after break out occurs). . .
Volumes too are relatively higher suggesting active interest in the stock by close circles. Moreover, If the expected break out of Rs 64/- comes with higher volumes, the better.
With the Nifty /Sensex showing weakness, it is likely that the investor / trader and speculator interest will shift to such 'news based' stocks
Happy trading !
CA Rajiv D Khatlawala
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