Infosys may move up in near-term

B. Krishnakumar

ITC (Rs 754): After a brief uptrend, the share price of the company turned weak towards the close of the settlement. The overall long-term trend in ITC continues to remain weak.

Price rally therefore needs to be viewed as an opportunity to book profit in the company. As of now, only a close above Rs 820 would impart some sort of positive trend. Alternatively, a decline below Rs 715 would take the scrip below the earlier low made at Rs 688. The future trend in the stock hinges on the price action in the next few days.

Hindustan Lever (Rs 204.05): The stock still has the potential to touch the upside price target range of Rs 210-215. Existing holders could remain invested and use price rally to book profit in the company. As of now, a move past Rs 207 on Monday would trigger a positive signal in Hindustan Lever. Aggressive traders could go long with a stop at Rs 193, if the scrip moves past Rs 207 on Monday.

Infosys Technologies (Rs 3,799.95): The long-term trend in the stock continues to remain weak. However, the short-term trend has turned positive. The scrip could move up in the near term. Only a decline below Rs 3,480 would negate the short term uptrend in the stock.

Existing holders could remain invested and use price rally to pare exposures in the company.

Satyam Computers (Rs 169.4): As expected last week, the share price of the company declined below the earlier low of Rs 162.25. After easing to a low of Rs 148.7, the share price of the company recovered ground to close at Rs 169.4. Only a move past Rs 180 would infuse short-term bullishness in the stock. Alternatively, a decline below Rs 148.7 would have negative implications. As of now, there is no compelling reason to take long positions in Satyam.

(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.)