Stock market analyst Hitendra Vasudeo of stockmechanics. com maintained 'Buy' rating on Grasim Industries to achieve a short term target between Rs 2629-Rs 2778.

According to Mr. Vasudeo, interested investors can buy the stock around Rs 2525-Rs 2480 with a strict stop loss of Rs 2440.

Today (July 15), the shares of the company opened at Rs 2560 as against it last closure of Rs 865.90 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 179.76 & 14.51 respectively. The share price has seen a 52-week high of Rs 2670 and a low of Rs 831 on BSE.

Apart from Mr. Vasudeo, India Infoline has advised traders to purchase Grasim to achieve a target of Rs 2570.

"On the daily chart, Grasim has formed a bullish Price channel. In the above pattern, the stock slopes up and is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line resembles support. The lower support line was formed from third week of June 2009. Subsequent lows confirmed the support line. The upper resistance line is drawn from second week of June 2009 onwards. Since then, the stock has been moving back and forth between the two parallel lines," the report said.

"On Monday, the stock rallied by 2% confirming the bullish set up. We expect the stock to break past the critical resistance levels of Rs 2,478. The other supportive technical oscillators are positive and the upmove may extend to the levels of Rs 2,570 and Rs 2,590. We recommend traders to buy the stock in the range of Rs 2,430-2,460 with a stop loss of Rs 2,390 on all long positions," the report added.

Grasim Industries, on July 09, said that with the beginning of monsoon, the production at its Staple Fibre Plant at Nagda, Madhya Pradesh (M. P.) has been started again.

The production is likely to be restored fully soon.

Because of shortage of water, the production at the plant had to be frozen till the beginning of monsoon.

On July 03, Grasim Industries, the leading cement maker of the A V Birla group, said that the company is not keen to unite with its division, UltraTech, as it does not see value in the process at this stage.

Grasim acquired UltraTech Cement from engineering giant Larsen & Toubro six years back. The company said that the investment bankers propose a merger after L&T sold its remaining 11.5% stake in UltraTech to financial investors this month.