CENTURY TEXTILES WEEKLY
Regular visitors would recall that I had been updating the weekly chart on this blog for a long time. I have posted this Special Update, as the stock has moved up considerably in the past week and has given a strong breakout with high volumes on the weekly chart.
On the attached chart, you will observe that after consolidating for about 5 weeks, Nifty Future has broken out of Flag pattern with high volumes. While this does indicate strength and augurs well for the stock, one must be careful that it will encounter strong resistance at 385. Further up move to 425 and 485 will be possible only when it manages to cross this hurdle at 385 - being 50% level as well as the trend line.
Continues to remain a good stock to buy on declines.
Another fall out of this up move is that the direct beneficiary will be Pilani Investmets (listed on BSE & NSE) which holds about 30% of this stock besides other investments in Aditya Birla Group and Tata Steel. Though the trading interest is low, it would be a good long term investment considering the strength of its total investments. The Balance Sheet of Pilani Investments makes an interesting reading for long term investor.
Wishing you all a very happy Gudi Padwa!
Ketan Asher.
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