The stock price of Siemens Ltd has more than halved from the level of Rs 600 it was trading in August, 1996. It had come down to as low as Rs 234 by May 23, 1997. A slow down in industrial growth pulled down Siemen's performance and the scrip had nose-dived.

However, it is now on a path of recovery. It has already recovered to Rs 296 by July 7. As can be seen in the chart, it has broken out of the downslope resistance line.

This upside breakout can take the scrip immediately to Rs 360. Around 8-10 lakh shares have been picked up since the scrip hit the bottom.

Earlier when the scrip came down, around 5 lakh shares were disposed off at Rs 362. Even earlier to that another lot of 3.79 lakh shares were sold at Rs 562.

Since the scrip has currently broken out of the downslope trend line, it would be an ideal technical buy.

If the prospects for the scrip improve, long-term investors would find the scrip heading back towards the Rs 500-mark.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.