Book profit on ITC, re-enter on declines

B.Krishnakumar

AS expected last week, the share price of ITC met with resistance near the Rs 880-mark. After touching an intra-day high of Rs 884, the scrip turned weak in the latter half of the previous settlement.

Existing investors can book profit and contemplate re-entry on declines. Fresh buying may contemplated once the stock moves past the Rs 884-mark.

Hindustan Lever: As mentioned last week, the scrip appears to be bracing itself for a move towards the immediate target zone of Rs 218-225. Existing holders could therefore hold on to their exposures and contemplate profit booking once the scrip moves up to or past Rs 218. Fresh buying may be contemplated if the scrip moves past Rs 200.

Infosys Technologies: The share price of the company was unable to move past the resistance area of Rs 7,590 that was mentioned last week. After touching a high of Rs 7,600, the scrip turned weak to settle at Rs 7,376. Given that there is still no evidence of the emergence of a new uptrend in the stock, it would safer to book partial profits on price rally. A close past Rs.7600 could be used to pick up fresh long positions in the stock.

Satyam Computers: Similar to Infosys, there is a lack of evidence to support the emergence of a fresh uptrend in the stock. Satyam faces overhead resistance at around the Rs.400-420 range. Existing holders could use price rally to clip exposures. Aggressive traders could contemplate short positions on evidence of weakness at around the above mentioned price zone.

(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.)