Weak outlook for Infosys, HLL

B. Krishnakumar

ITC (Rs 675): As expected last week, the share price of the company ruled weak.

After declining to Rs 651.5, the scrip recovered a bit in the last couple of days. The near-term outlook for ITC continues to remain weak. A decline to Rs 635-640 level appears to be on the cards. As of now, only a move past Rs 704 would impart some sort of positive trend in ITC while a dip below Rs 652 would impart short term bearish trend.

Hindustan Lever (Rs 211.15): Contrary to expectations, the share price of the company ruled weak. In the process, it declined below the crucial level of Rs 214.7. This has effectively negated the possibility of a move to Rs 233 level. Given the weak outlook, existing holders could book profit while fresh buying may be avoided. Very aggressive traders could take long positions on a move past Rs 222.

Infosys Technologies (Rs 3027): The share price of the company moved in sync with last week's recommendation. As of now, a move past Rs 3,100 would impart short-term uptrend while a decline below Rs 2,845 would impart weakness in Infosys. Given the overall weak trend expected, existing holders could look for opportunities to clip exposure in the company. Very aggressive traders could take long positions on a move past Rs 3,100. A decline below Rs 2,845 could be used to initiate short positions with a tight stop loss.

Satyam Computers (Rs 143.2): The price action in Satyam too was right in line last week's recommendations. The scrip managed to move to the price target of Rs 155, mentioned a few weeks ago. The short-term trend has now turned weak. And, only a move past Rs 170 would impart some sort of positive trend. A decline below Rs 132 would, however, impart further bearishness in Satyam. Existing holders could look for opportunities to reduce exposure in the company.

(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.)