MUMBAI, June 23: ABS Industries has bottomed out. The scrip, after sliding from Rs 71 in February, hit the bottom at Rs 46 on June 13, 1997. It has moved up to Rs 49 now. The long term buy signal had been generated at Rs 46 itself. But as can be seen in the daily chart, the scrip has now come abreast of the resistance line. It is in the process of crossing this line upwards. As the scrip rises, it would meet with a resistance at Rs 57. And if this is again breached, it has a chance to move back to the level of Rs 70. Right at the bottom there were transactions of the order of 2000-1800 shares. Now it has petered down to 600 shares.

As of now, the bottom risk appears well defined at Rs 46. This scrip should be attractive to the medium and long term investors. Making entry right now would seem to be the right thing. For, if resistance is seen at Rs 57, one can book profit and get out. Better would be to wait for the market reaction to set in, when you should be able to pick it up closer to Rs 46. Aggressive investors can start the process of slow accumulation now.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.