ITC, HLL on firm terrain

B. Krishnakumar

ITC (Rs. 665.50): Contrary to expectations, the scrip ruled firm and managed to move past the projected resistance level of Rs. 645. After a brief downtrend, the stock resumed its upmove the last week.

Given the unexpected strength in the stock, existing holders could remain invested and look to cut exposures once it moves past the Rs. 700-mark. On the other hand, a decline below Rs. 645 could trigger a sharp downtrend in the stock.

Hindustan Lever (Rs. 2,503): Similar to ITC, the expected downtrend in Hindustan Lever stock did not materialise. On the contrary, the share price of the company moved up sharply on Friday, after having ruled flat in the earlier part of the week. The spurt on Friday has turned the trend positive in the stock.

On the upside, Hindustan Lever has to contend with a strong down-sloping trendline at the Rs. 2,550-level. A break past this level on the back of strong volumes could push the stock into a new bull orbit.

Infosys Technologies (Rs. 5,981): The stock continued to rule weak in tune with expectations. An evidence of a reversal in the downtrend is still not in sight. This would indicate that the stock could continue to witness a subdued trend in the current settlement as well.

A decline below Rs. 5,525 would trigger a further sharp downtrend. On the upside, the scrip faces strong resistance at the Rs. 7,000-level.

Satyam Computer (Rs. 2,187): In alignment with the previous week's expectation, the share price of the company continued to seek lower levels. As a result, the scrip is now on the verge of completing the ongoing downward cycle.

Though the trend is yet to turn upwards, the scope for a significant downside from current levels appears limited. Investors can hold on and cut exposures on price uptrend. Fresh purchases may be deferred for the time being.

(Note: This column analyses the outlook for major Nifty constituents based entirely on technical analysis of the past price behaviour of the scrip concerned. There is a risk of loss in trading.)