Sizzling Stocks

TTK Healthcare (Rs 413.3)

It was TTK Healthcare that applied salve to the wounds inflicted on trading portfolios by an otherwise volatile market. The stock gained around 40 per cent last week. Its foray into orthopaedic business was viewed with much enthusiasm by market participants, helping it move past the key resistance at Rs 300. High volume action accompanying this break-out is a positive for the stock.

The structural uptrend from the 2003 low continues to be in place for TTK Healthcare. Following a long-drawn consolidation from April 2006 to December 2008, the stock appears to have commenced the third leg of its structural uptrend. Simple extrapolation gives us the first target of this up-trend at Rs 390. Next long-term target is Rs 576.

A short-term correction began in the stock on Friday. This decline could extend to Rs 360 or Rs 320 in the near-term. Investors with short-term perspective can hold the stock with stop at Rs 355. Medium-term investors can hold the stock as long as it trades above Rs 300.

Adani Enterprises (Rs 562.6)

This was yet another stock that gave runaway gains to investors last week. The week began on a sedate note at Rs 475 for Adani Enterprises. It zoomed higher from there to record the peak of Rs 565 on Friday, yielding 19 per cent gain to this high. The stock put the bear phase of 2008 behind it when it moved above the key intermediate-term resistance at Rs 464 in February this year. After spending some time consolidating above this level, it appears to have broken out now.

Third wave of the move from March 2009 low has the targets of Rs 504 and then Rs 616. Since the stock has moved beyond the first target it can now attempt to move towards the second one. Previous life-time high at Rs 667.5 is also a potential target for this stock if the rally sustains. But volatility is likely to surface as it nears its previous peak. Short-term investors can buy in declines as long as it trades above Rs 525. Stop for medium-term investors can be at Rs 475. — Lokeshwarri S.K.