Raymond Ltd has risen from Rs 56 to Rs 75. The rise has been with volumes. The reason is the reported restructuring of business and the gains that could come from it. On the weekly chart the resistance is seen at Rs 90. But the daily chart has shown that the scrip is unable to make much headway in the last 4-5 sessions. Fatigue might well overtake, and Tuesday could see some profit booking.On the daily chart the sell signal had come on March 10 itself. In other signals too the same has come now. But the scrip is still above the 7-day moving average. Also volumes have gone down indicating that traders are not in a hurry to book profit.
Despite all these there is a possibility of the scrip weakening. It would still be the right to book profit, before the slide gathers momentum. Yes you could lose out on the gain to Rs 90; but you could also lose out from Friday's closing, It could come down to Rs 68.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
