The stock appears to be headed to the
immediate resistance at Rs.116-117 range. A breakout past this
resistance could push the price to higher levels. We expect Liberty
Shoes to eventually rally to Rs.183, which is the 50% retracement of the
fall from Sept.2005 high of Rs.289.95 to the Oct.2008 low of Rs.32.30.
A breakout past the immediate resistance
at Rs.117 would strengthen the case for a move towards Rs.183. This
target of Rs.183 is meant for those who are willing to play the waiting
game as itt may take a few months or even beyond for the stock to reach
this target.
The positive view would be invalidated
if Liberty Shoe falls below the support at Rs.88. With the stock
currently ruling at Rs.102, the stop loss at Rs.88 would be too rich for
comfort. Investors may therefore accumulate the stock on weakness, so
that the net risk on the trade is within acceptable limit.
ONE MORE RECENT DEVELOPMENT MAKES THIS STOCK MORE ATTRACTIVE
Famous Investor Dolly Khanna recently Bought Liberty Shoes in Portfolio
