MARKET WATCH: Query Corner: What the charts say.

from BUSINESS LINE, August 31, 2008 Is it wise to invest in Suzlon at these levels? Please give me a technical outlook. -- Jagjit Suzlon Energy (Rs 218): It has been a disappointing performance by Suzlon Energy thus far in 2008. The stock has been sliding lower forming lower peaks and troughs. As indicated in our previous review of this stock earlier this year, the key support band exists between Rs 220 and Rs 250.

We had recommended investors to divest their holding on a decline below Rs 220 as the next support was at Rs 186.

Suzlon Energy formed a low at Rs 174 on July 4.

But the movement of the stock since this trough has been far from heartening. A re-test of the July trough and a decline towards the next long-term support at Rs 155 appears likely over the next three months.

That said, investors can utilize such declines to accumulate the stock with a long-term perspective.

Risk-averse investors can wait for firm signs of recovery in the form of a close above the down-trend line at Rs 250 before buying the stock. Resistances over the ensuing year would be at Rs 250 and then at Rs 300.

I would like to know the short and medium prospects of RCF bought at …