Sustained uptrend in ITC and HLL

B.Krishnakumar

THE previous week's recommendation pertaining to ITC turned out to be a cropper. Contrary to expectations, the share price of the company shot up past the resistance level of Rs 802.

The overall trend would turn positive only if the scrip moves past the Rs 880-level. Till such time, it would be safer to book profit in the stock. Fresh buying may contemplated once the stock moves past the Rs 880-mark. A move past Rs 880 would take ITC to next price target of Rs 915-920 range.

Hindustan Lever: Similar to ITC, the price movement in Hindustan Lever was not on line with previous week's expectations. The stock moved past the resistance level of Rs 183 to touch a high of Rs 199.4. The scrip appears to be heading towards the next price target of Rs 218-225 range. Existing holders could remain invested and use price upmoves to or past Rs 218 to book profit in the stock.

Infosys Technologies: The decline below the price level of Rs 7,290 has infused short term weakness in the stock. The near term outlook for Infosys does not appear positive.

A move past Rs 7,590 is the minimum requirement for the onset of a short term uptrend in the stock. Fresh buying may be contemplated once the stock moves past this price level. Till such time, it would be better to stay away from Infosys. Intermittent price rally may be used to progressively book profit in Infosys.

Satyam Computers: The overall trend in the stock continues to be weak. A decline below Rs 336 could be used to initiate fresh short positions. On the other hand, a move past Rs 365 could be used to initiate long positions (with a tight stop loss) in Satyam. Until there is a decisive move either way, it would be better to stay away from the scrip. Fresh positions may be contemplated on price move past above mentioned levels.

(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.)