Short-term outlook for Infosys positive

B.Krishnakumar

ITC (Rs.685): The sharp up move on Thursday has imparted positive trend. As mentioned last week, a contracting triangle pattern appears to be evolving in the daily chart.

A move past Rs.748 would impart positive trend in the stock and could push the scrip to the Rs.830-850 range. A decline below Rs.638 would result in a short term weakness in ITC. Existing holders could remain invested while fresh buying may be considered on price move past Rs.748.

Hindustan Lever (Rs.219): The scrip has the potential to touch an upside target price of Rs.228-230 in the near term. Such a possibility would gain further validity if the scrip moves above Rs.221.

Existing stakeholders could remain invested while fresh buying may be avoided for the time being. A decline below Rs.211 would impart negative trend in the stock. Existing holders could reduce exposures once the scrip moves to Rs.228-230 area.

Infosys Technologies (Rs.3250.25): As mentioned last week, the move past Rs.3100 on Thursday has now reinstated short term uptrend. The near term target for Infosys is at the Rs.3400-3500 range.

As the short term outlook has turned positive, existing holders could remain invested. As of now, a decline below Rs.2990 would negate the positive outlook. Fresh buying may be considered on price dips with a stop loss at Rs.2800.

Satyam Computers (Rs.177.8): Similar to Infosys, the short term outlook for Satyam too has turned posiive as the scrip has now moved past the resistance level of Rs.170. A move below Rs.151 wou;d impart negative trend in Satyam. Existing holders could sit tight while price weakness could be used to take exposures with a stop at Rs.143. The immediate resistance for Satyam is at Rs.181, followed by Rs.199.

(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.)