MARKET WATCH: Query Corner: Indian Bank in sideways corrective phase.

from BUSINESS LINE, February 28, 2010 Kindly advise on HDIL and Indian Bank's outlook for the long-term investment horizon. Mangesh Sri HDIL (Rs 301.1): In our review of HDIL in November last year, we had written that one leg of the up- move had ended at Rs 410 and the stock could launch into a decline to Rs 280 or even Rs 197 over the medium-term.

The stock has tested Rs 290 twice since then and is currently poised around this level.Key medium-term support for the stock is at Rs 280 and sideways move between Rs 280 and Rs 400 for few months will be construed a positive consolidation phase that can be followed by a rally to Rs 460, Rs 590 or Rs 720 over the next 12 months.

Medium term investors should divest their holding on a decline below Rs 280 since that would signal a possible decline to Rs 237 or Rs 196 over the next 12 months. Long-term investors can hold the stock as long as it trades above Rs 196.

Indian Bank (Rs 163.8): The stellar rally from March 2009 low ended last October at Rs 195.7 and the stock has been in a sideways corrective phase since …