Friday, January 8, 2016

Simplex Infrastructures

After bottoming out at Rs.40 in August 2013, the stock of Simplex Infrastructures has been on a long-term uptrend. However, after encountering resistance at Rs.485 in March 2015, the stock started to decline and has been on an intermediate-term downtrend.

The long-term uptrend will be in place as long as the stock trades above the significant support band between Rs.250 and Rs.260. Investors with a long-term perspective can hold the stock with a stop-loss at Rs.250.

In the short term, the stock will move in a sideways range between Rs.305 and Rs.360. A fall below Rs.305 will provide an opportunity to accumulate the stock, with stop-loss at Rs.250.

An upward break of Rs.360 can take the stock northwards to Rs.400 in the short to medium term. A strong rally above Rs.400 will imply continuation of the uptrend and take the stock higher to the long-term targets of Rs.450 and Rs.485 levels.

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