Scope for further upside in Infy

B. Krishnakumar

THOUGH the ITC scrip (Rs 746) moved past the target price of Rs 780, it reversed sharply thereafter to rule weak.

After touching a high of Rs 801.7, the ITC stock crashed to a low of Rs 730.

Given that the stock still has some downside risk, existing holders could use the price rally to clip exposures in ITC. Fresh buying may be deferred for the moment as the stock still has some downside risk at current levels.

Hindustan Lever (Rs 173.7): The stock appears to be in the midst of a short-term uptrend. Existing holders could remain invested and contemplate profit booking once the scrip moves either to or past Rs 200. Fresh long positions may be contemplated with a stop loss at or below Rs 162, with a price target of Rs 200. Aggressive traders could initiate short positions once the scrip moves past the Rs 200-mark.

Infosys Technologies (Rs 7,090): As mentioned last week, the share price of the company ruled weak and embarked on an uptrend after edging below the support level of Rs 6,200-6,250. The rally over the past two days has infused short-term uptrend in the stock.

Price weakness could be used to build exposure in Infosys. A decline to the Rs 6,750-6,850-range could be used to take fresh long positions. Existing holders may contemplate partial profit booking once Infosys moves to the Rs 7,500-mark.

Satyam Computer (Rs 345.9): The short-term trend in the stock has turned positive. Existing holders could, therefore, hold on to their exposures. Aggressive traders could also contemplate long positions on price weakness, with a stop below Rs 290. The immediate resistance for Satyam is in the Rs 395-400-range. Partial profit booking may be considered if the scrip moves to the above mentioned price 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.)