STOCK RESEARCH REPORT For Mediam to Long term

HERITAGE FOODS LTD. On 14.08.2010      

CMP: 173                                                                                            Target: 330 

 This South Indian based Dairy, Agricultural product and Retail outlet related company did not break the primary trend line ‘TL1’ since it had been listed in the chart-1. The price has strongly moved by the support line of ‘TL4’ from point ‘0’ after a big down fall. The price pulled back from point ‘2’ after 50 % retraced of length of ‘0-1’ with huge volume. This indicates the buyers are much active to buy at this level. It is the psychological support level of Fibonacci Retracement. The ‘S1’horizontal & TL4 lines also are supported at this level. I am discounting point ‘2’ as Wave 2. Now project the target of Wave 3, I get minimum 100% length of Wave 1 (0-1), the value of Rs. 351. (Blue Fibonacci scale)

  The major short term support level is the ‘TL4’ & 200 Weeks EMA. Those are plotted on similar level at around Rs.160. Incase the price will break this level then next strength level will be around Rs.130. which is 61.8% Fibonacci Retracement level of Wave 1 (0-1).  Here the price also gets support from Horizontal line ‘S2’ & ‘TL2’ line (parallel of TL1). If the price comes here, then Wave 3 Target is minimum 100% of wave 1 around   Rs.335. (Green Fibonacci scale)

  The 50 weeks EMA line golden cross with the 200 Weeks EMA and those line are moved upward. This indicates, intact has strength. The weekly RSI has broken out its downtrend line. This indicates the RSI should be moved an uptrend. The Market Strength Indicator [(Mov(OBV(CLOSE),5,E)-Mov(OBV(CLOSE),35,E)] has moved  sharply upward. This indicates the buyers are very much active at this level for buying.

In the chart, TL4 & TL5 are forming a Triangular shape. It can take a major part for coming day’s price movement.  

Now discussing According the Fractal Rule in the Chart -2. Here indicates two patterns, named as ‘1’ & ‘2’. Those are looking almost similar. Pattern 1 has formed by points ‘a’ to ‘l’. It is the smaller size. But pattern 2 is the larger. This has formed points ‘A’ to ‘K’. According Fractal

Rule, the point ‘L’ should be formed as like as point ‘l’ of pattern 1. The point ‘l’ of pattern 1 formed 261.8% of ‘h’ to ‘i’ length. The possibility of the point ‘L’ of pattern 2 formed after price movement of 261.8% of the points ‘H’ to ‘I’. It will be valued around Rs.330.

CMP: 173.

Resistance Level: (207), R2 (240), R3 (258), R4 (313)

Support Level: S1 (146), S2 (130)

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Reported by DEBABRATA BHATTACHARJEE

Email ID: imdb1@ymail.com

Mobile No. 09883388754  ____________________________________________________