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Wednesday, June 8, 2011

TRADING RECOMMENDATIONS 8th June

Patel Engineering Ltd. CMP— Rs155.6
We recommend going long in this counter at current levels.

Technical Outlook:-
The share price movement of Patel Engineering appears to be forming an inverted Head & shoulder formation. This is a bullish formation and measuring implications suggest that the stock price could test levels of Rs163 / Rs167 in the near future. Moreover, the stock is also trading above all its key short term moving average clusters which is also a sign of strength in the stock.

Suggested Trading Strategy:-
Thus, traders can look to buy at current levels with a stop placed below Rs150.40 and hold for the above mentioned targets, expected to be achieved over the upcoming 3-4 sessions of trade.

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