Book profit on Infosys, Satyam

B. Krishnakumar

ITC (Rs 871.5): After moving to the top of the upward cycle, the share price of ITC turned weak in the previous settlement.

As the scrip is yet to complete the ongoing downward cycle, existing holders could look to cut exposures in ITC. Fresh buying may be deferred for the time being. An evidence of support at around the Rs 830-840 range could be used to take fresh exposures in ITC.

Hindustan Lever (Rs 201.9): As expected last week, the stock reversed direction after moving closer to the price target of Rs 220. After touching a high of Rs 217.7, the scrip turned weak and ended the week at Rs 201.9. As the outlook for the stock continues to remain weak, fresh buying may be avoided for the time being. Evidence of support at around the Rs 180-190 range could be used to pick fresh exposures in Hindustan Lever.

Infosys Technologies (Rs 5,798): The share price of the company failed to move past the resistance level of Rs 6,500-6,600 mentioned last week. The near term trend in the stock continues to remain weak. On the upside, Infosys faces resistance at Rs 5,930 level, above which, the Rs 6,150 level would stall the uptrend in the stock. Existing holders could therefore cut exposure once the scrip moves either to or past Rs 5,930.

Satyam Computers (Rs 385.1): The stock is also yet to complete the ongoing downward cycle. The scrip could decline to its immediate support level at around the Rs 350 mark.

Existing holders could therefore book profit and contemplate fresh entry on evidence of support in the Rs 345-355 range.

(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.)