Positive trend in Infy and Satyam

B.Krishnakumar

ITC (Rs.700): As mentioned last week, the overall trend in the scrip remained positive.

After touching a high of Rs.737 on Friday, the scrip lost ground to close at Rs.700. As of now, a move past Rs.738 would impart positive trend in ITC while a decline below Rs.680 would impart bearish trend. Existing holders could use price upmoves to clip exposures. Fresh buying may be considered only if ITC moves past Rs.750.

Hindustan Lever (Rs.214.5): After a strong rally in the first few days, the scrip was confined to a narrow trading range towards the close of the week. At this juncture, it would be better to wait for a breakout from the trading zone before initiating fresh trades. A move above Rs.224 would result in a positive trend while a drop below Rs.208 would have negative implications.

Infosys Technologies (Rs.3561): As observed last week, the share price of the company ruled firm and also managed to move past target price zone of Rs.3400-3500. Though the share price could see some consolidation at current levels, the near term trend in Infosys continues to remain positive. A strong up move could fructify if the scrip manages to close above Rs.3700. On the contrary, a decline below Rs.3400 would push the scrip to Rs.3150-3200 range. Existing holders could remain invested while a move past Rs.3700 could be used to reduce exposures.

Satyam Computers (Rs.214): The share price of the company managed to move past the resistance levels at Rs.181 and Rs.199. The trend in the stock continues to remain positive. Existing holders could remain invested. Fresh buying may be considered on declines. Evidence of support at around Rs.185-190 range could be used to take fresh exposures (with a stop at Rs.170) 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.)