Wednesday, April 1, 2009


Textile sector has been hard hit like many other sectors. However in the recent pullbacks some of them like Century Textiles have performed reasonably well. This has been done in the absence of any major positive news flow for the sector. Now the grapevine has it that this sector is on the threshold of receiving impetus through some good news. That calls for taking serious note of this sector and that's exactly what we shall do in the succeeding paragraphs.

Alok Industries

From low of 11.55 on 23 Mar 2009 Alok Industries has touched a high of 13.2 on 30 Mar 2009 and closed at 12.5 on 31 Mar 2009. One can safely buy this scrip at the present level of 12.5 since the downside risk is limited and upside reward will be enormous if positive environment makes smart money flow into this scrip. However after buying at 12.5 it will be prudent to book profit once at 15.5. This would enable a retail investor to collect money from the table and be ready to again enter the scrip after it corrects itself.

Arvind Ltd

Arvind Ltd dipped to a low of 10.35 on 06 Mar 2009 and from there has sailed almost effortlessly to a high of 14.2 on 30 Mar 2009. It has performed much better than Alok Industries from its low. However now it should take a breather and cool down to around 12.5. So one should look to buy Arvind Ltd not before 12.5. At the same time one shouldn't be surprised to find this scrip to be trading again at 11 if the sector doesn't receive good news impetus.

Century Textiles

From a low of 145 on 24 Feb 2009, Century Textiles has had a good run up to its high of 225.8 on 31 Mar 2009. For a retail investor there is no point in buying it at the present level. If the scrip corrects from here, as it seems so from various indicators, then buy not before 185.