Buy and Hold...

Century Textiles (BUY, above Rs341, Target Rs352): on the daily chart, after being on a downtrend since May 2011, the stock has staged a short-term reversal. Also, after yesterdays rebound was accompanied with good volumes and a close near day’s high which has led to formation of hammer pattern on candlestick. Any move above Rs341 should end the down trend in the counter and stock should head towards Rs355 in the near term. Another important observation to corroborate bullish stance in the stock is formation of ‘falling wedge’ on the medium term chart which suggest the downtrend in the counter is near to an end. Based on above observations, we recommend traders to buy above Rs341 with stop loss of Rs336 for target of Rs352.