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B. Krishnakumar

ITC (Rs 755): As mentioned last week, a break above Rs 760 helped the scrip move towards the next resistance zone at Rs 780. However, ITC failed to settle above Rs 780. After edging up to Rs 782, the scrip turned weak on Friday. On the upside, there is a strong resistance at Rs 820 from the down sloping trend line. A break above Rs 820 would be a daunting task for ITC. A short-term downward correction is the preferred view. Existing holders could remain invested and use price up moves to reduce exposures.

Hindustan Lever (Rs 257): As expected last week, the scrip ruled firm and moved past the target price of Rs 250. Technically, the scrip appears to be in the last leg of the ongoing rally. A significant downward correction would follow on the completion of the ongoing up-trend. As of now, the scrip appears to have the potential to touch Rs 265-270 range. Existing holders could remain invested and contemplate profit booking once the scrip moves past Rs 265.

Infosys Technologies (Rs 3605): As expected last week, the share price of the company ruled weak and also closed below the key 200 day moving average (DMA) on Thursday. The breach of the 200 DMA, however, proved to be short lived with Infosys staging a smart recovery on Friday. As of now, the near term outlook continues to be weak. The immediate resistance is placed at around Rs 3820-3850 range. Only a move above Rs 3900 would have any sort of positive implication. As of now, it would be safer to use price rally to reduce exposures in the company. Fresh buying may be deferred.

Satyam Computers (Rs 270): Similar to Infosys, the share price of Satyam too was battered on Thursday. As of now, the scrip could test the Rs 250 level. Only a move past Rs 300 would impart some sort of positive trend. Such a move would push the scrip towards the earlier pivot high of Rs 330. Trading position may be considered after reviewing the price action in the next few days. A break above Rs 300 could be used to take long positions by high risk traders. Existing holders could use price rally to trim exposures.

(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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