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B. Krishnakumar

ITC (Rs 707.1): The price movement in the scrip was contrast to last week's expectations. The scrip moved up during the week, contrary to the expectation of a weak trend. Going by the recent price action, some sort of a triangle pattern appears to be taking shape. If this observation is valid, the share price of ITC could edge to the Rs 660-670 range in the near term. As of now, a move past Rs 743 is the minimum requirement to push the scrip into a new bull orbit.

Hindustan Lever (Rs 223.95): The scrip tried to break out of the ongoing trading range. It edged past the resistance level at Rs 224 on Monday. However, the scrip was unable to close above Rs 224. The recent price action seems to suggest that there could be an upward spike in the share price in the short term. Fresh buying may be avoided while existing holders could use price up move to book profit in Hindustan Lever. Traders may stay away from the stock for the time being.

Infosys 4,519): As expected last week, there was a short-term uptrend in the scrip. As of now, a move past Rs 4,700 could be used to take fresh long positions with a price target of Rs 5,100. On the other hand, a drop below Rs 4,250 would have bearish implications for Infosys.

This would lead to a further down move towards the Rs 3800-3850 level. The scrip is likely to recover thereafter to the projected price target of Rs 5,100. Long-term investors could remain invested while short-term trading strategy would depend on the price action in the next few days.

Satyam Computers (Rs 273.45): The scrip ruled distinctly firm last week. The near-term outlook for the scrip continues to remain positive. A close above Rs 280 would push the scrip past the Rs 300 mark. On the contrary, a decline below Rs 260 would, however, result in a negative trend in Satyam. Existing holders could use price upmoves to reduce exposure in Satyam. The price movement over the next few days would determine the trading strategy for short-term traders.

(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.)

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