Cut exposure in pivotals

B. Krishnakumar

ITC (Rs 717.9): In tune with expectations, the share price of the company ruled weak in the previous settlement.

The trend in the stock continues to be down. On the upside, the scrip faces resistance at around the Rs 755-760 level. Existing holders could remain invested and use a price rally either to or past Rs 750 to cut exposures. Fresh buying may be contemplated once the scrip declines to around Rs 670-690.

Hindustan Lever (Rs 207.8) : There is no evidence of the completion of the recent downtrend in the stock. The share price of the company appears vulnerable to a decline to the Rs 175-185 range. Existing holders could use a price rally to the vicinity of Rs 225-230 to trim exposures in the stock. Fresh short positions may also be contemplated at around the resistance level of Rs 225-230. Buying in Hindustan Lever may be deferred for the time being.

Infosys Technologies (Rs 7,360): The sustained decline in the stock over the recent weeks has triggered a short-term downtrend, which would take some time to be completed. A price rally could therefore be viewed as an opportunity to trim exposures. The scrip faces overhead resistance at around the Rs 7,600-7,800 range. A price rally to this zone could be used to lighten holdings in Infosys. Fresh buying may be contemplated once the stock declines to the support zone at around the Rs 6,000-6,250 band.

Satyam Computers (Rs 488.1): The trend in this stock too has turned weak consequent to the sustained downtrend in recent weeks. The scrip could now decline to the next support level, which is way down at around the Rs 380-400 zone. A price rally either to or past the Rs 510 levels could be used to trim exposures in Satyam. Fresh short positions may be contemplated on evidence of price weakness at around the Rs 520-525 range.

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