The Hindu Business Line : Further drop likely in ITC, HLL

ITC (Rs 663): As observed in earlier weeks, the overall trend in the scrip continues to remain bearish. Going by the recent chart patterns, the scrip could slide to the Rs 580-600 band shortly.

A close below Rs 640 within the next few days would be an early pointer towards further weakness in the scrip.

Currently, only a close above Rs 710 would negate the weak outlook.

Given this backdrop, existing holders could reduce exposures. Fresh short positions may be considered by aggressive traders with a stop loss at Rs 700.

Hindustan Lever (Rs 180.25): As anticipated last week, the share price of the company touched the price target of the Rs 190-195 band. After touching a high of Rs 191.25 on Monday, the scrip turned weak. The sharp decline on Friday has blunted the earlier positive outlook.

The immediate downside target is at Rs 175. A drop below Rs 174 could push the scrip down to the Rs 160-163 range.

As of now, only a move past Rs 192 would negate the bearish outlook.

Existing holders could reduce exposures while aggressive traders could contemplate short positions with a stop loss at Rs 187.

Infosys Technologies (Rs 3,560.2): As expected last week, the scrip turned weak after moving to the target price zone of Rs 3,650-3,700. After touching a high of Rs 3,664, the stock turned weak on Monday. The near-term outlook for the stock appears weak. A drop below Rs 3,400 within the next few days would confirm the negative outlook. And a slide below Rs 3,350 could push the scrip to the Rs 2,950-3,000 band. At present, only a close above Rs 3,700 would negate the negative outlook for Infosys.

Satyam Computers (Rs 239.25): After touching a high of Rs 247.9 on Monday, the share price of the company turned weak. Similar to Infosys, the near-term outlook for Satyam too appears weak. A close below Rs 228 would confirm the weak trend in the scrip and could push the scrip to Rs 210-215 range. Only a move above Rs 248 would reinstate positive trend. Existing holders could reduce exposures while fresh buying may be avoided.

(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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