Tanla Solutions Views!!!

Below is the chart of Tanla Solutions brought to my notice by a friend Raj Baheti.

Tanla Solutions is amongst the first Indian companies that focused on integrated solutions and products for the wireless world, Tanla carved its niche in the mobile communications industry very early on with a rare distinction of rolling out its sophisticated SMSC product within three months of inception. Tanla was the first Indian company to indigenously make the SMSC and VMS that now successfully compete with offerings from established global players. Its SMSC has been deployed by leading players in India's telecom industry, including Reliance, BPL, Hexacom, Airtel and Essar. Company website and some more info !

Getting back to what we do here...analyze! From the chart below we can see that this stock is at consolidation mode from the last three months. Incidentally these levels are also the 61.8% fib if drawn from the 2009 Feb lows to 2009 June Highs! Yes there was a positive divergence in the indicators below which seem to have worked their way with this recent upmove yesterday (Tanla Solutions surged 5.42% to Rs 48.65 at 10:35 IST on BSE after 3.18% of equity changed hands in a bulk deal on the BSE). 

The stock seemed to have closed just shy of the 50 periods MA. Unfortunately with the broader market overbought and ripe for correction this can also come under some pressure. If one is already a buyer then a strict stop under 45 is warranted. If one plans to go long then a buying above 50 is good idea or wait for it to get pulled back (coz of weakness in market) to 45 odd levels and hold steady for the overhead target of 58/60 where the falling 200 periods along with the TL might pose a lil resistance!