Technical Buy Call: GUJARAT ALKALI - Rs 185.40

Technical Buy Call: GUJARAT ALKALI - Rs 185.40
1st Target: Rs 218 (4-6 weeks) 2nd Target: 227 (12-14 weeks) Stoploss: Rs 169

Gujarat Alkali peaked to an intra-week high of Rs 243.75 in the week ended May 5, 2006, and then reversed the next few week, struggled a bit at 244 level before declining to post an intra-week low of Rs 125.25 in the week ended June 9, 2006. It next fell to an intra-week low of Rs 107.10 in the week ended March 9, 2007. From there it staged a recovery, almost took support on the 21-week EMA, and posted a series of progressively higher tops and bottoms. It peaked at an intra-week high of Rs 275.00 week ended January 4, 2007 and agains entered a corrective phase. Gujarat Alkali couldn’t sustain these levels for long, declined to post an intra-week low of Rs 120 in the week ended January 25, 2008. The recovered touched a high of Rs 203 in the week ended April 17, 2008. It fell again and almost gave a downward breakout from its upward sloping trendline. There is a possibility of upside from the 200 level.