Short-term trend turns positive

B. Krishnakumar

AS mentioned last week, the Hindustan Lever stock (current market price - Rs. 2,529.10) continues to be in a broad trading range.

The short-term trend is expected to turn positive in the next couple of days.

Existing holders could remain invested and lighten their holdings on a price rally. Fresh purchases may be contemplated at lower levels.

ITC (Rs. 575.7): In tune with expectations, the share price ruled very weak in the previous settlement. The stock appears to be headed towards a short-term cycle bottom.

A price rally could set in once the present cycle bottoms out in the next few days. Given the weak technical outlook, any uptrend should be viewed as an avenue to exit from ITC.

Infosys Technologies (Rs. 7550): As mentioned in the last couple of weeks, the share price declined below the earlier bottom of Rs. 7,051.

The scrip is now on the verge of completing a short-term cycle which is an indication that a rally would materialise in the forthcoming settlement.

Aggressive traders could contemplate long positions while existing holders could trim exposures on price rally at around the next resistance level in the Rs. 9,300-9,500 zone.

Bajaj Auto (Rs. 370.30): The scrip appears set to touch the price target of Rs. 430-440 in the ensuing settlement. Existing holders may remain invested and cut exposures once the price enters the target zone.

High risk traders could take exposures with a very tight stop-loss.

Reliance Industries (Rs. 337.75): The price pattern in the recent days indicates that the scrip could move up further in the short term.

Long positions may be contemplated with a short-term price target of about Rs. 380-400. Existing holders could trim exposures once the price reaches its target zone.

(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.)