Book profit in ITC, HLL

B. Krishnakumar

AS expected, the share price of ITC ruled firm last week.

After touching a high of Rs 797, the scrip has since turned weak. Given that the medium-term trend in the stock is still weak, existing holders need to look for avenues to exit.

Very aggressive traders could contemplate short positions with a stop loss at or above Rs 802. Fresh buying may be deferred for the time being.

Hindustan Lever: In tune with expectations, the share price of Hindustan Lever (HLL) ruled weak in the previous settlement. There is no evidence of a reversal in the current downtrend.

Present holders could book profit once the scrip moves closer to the resistance level of the Rs 180-183-range. Fresh buying may be avoided. Short positions may be considered on evidence of price weakness at around the Rs 182-level.

Infosys Technologies: The expectation of a short-term rally in Infosys was scotched by the lacklustre price action in the last few days. The price formation in the previous week has blunted the short-term positive outlook for the stock. A decline below the Rs 7,290-level would indicate that the stock could seek further lows. Fresh trading positions may be deferred until a firm trend emerges in the stock. Price rally may be used to progressively book profit in Infosys.

Satyam Computer: After touching a high of Rs 384.7, the scrip turned weak thereafter. As mentioned in earlier weeks, the stock continues to be in a downtrend. In the near term, Satyam Computer could ease below the immediate low at Rs 323. It could see a short-term rally thereafter. Aggressive traders could contemplate short positions with a profit objective of Rs 323.

(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.)