Short-term uptrend in Infosys

B. Krishnakumar

THE near term outlook for the ITC stock appears positive, though it continues to be in the midst of a medium term downtrend.

Fresh purchases may, therefore, be deferred. Price rally could be used to book profit.

On the upside, the scrip faces strong resistance at the Rs 800-802 range. A close past Rs 802 is the minimum requirement for the resumption of an uptrend. Aggressive traders could contemplate short positions on evidence of weakness at around the Rs 800-level.

Hindustan Lever: The trend in the stock does not appear positive. Any price uptrend could be used to clip exposures. On the upside, the scrip faces resistance at around the Rs 198-200 level. Fresh purchases may be avoided for the time being. Existing holders could remain invested and use price rally to the vicinity of Rs 198 to offload holdings.

Infosys Technologies: As expected last week, the scrip was on a downtrend. It managed to seek support in the price band of Rs 7,300-7,400 mentioned last week. The short-term trend in the stock has now turned positive.

A move past Rs 8,036 would be a strong indicator of a further uptrend in the stock. On the other hand, a decline below the Rs 7,315-level would indicate further weakness in the stock.

Satyam Computers: The decline below the Rs 365-level (mentioned last week) is a pointer that the stock is still in a downtrend. On the upside, it could face resistance at around Rs 415-440 level.

In the near term, the stock could rule firm. Existing holders could use price rally to cut exposures. High-risk traders may contemplate fresh long positions with a very close stop-loss.

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