The Hindu Business Line : Infosys may decline further

ITC (Rs 686.9): Though the scrip ruled firm during the week, the overall outlook continues to remain bearish. Only a close above Rs 730 would blunt the overall bearish outlook. However, the scrip could seek higher levels in the next few days. After a move to the Rs 700-710 band, ITC could turn weak. Given this backdrop, existing holders could remain invested with a stop at Rs 665. Price move towards Rs 700 could be used to reduce exposures.

Hindustan Lever (Rs 1,803): As anticipated last week, the share price of the company ruled weak. Except for a rally on Wednesday, the trend in the scrip remained weak. Going by the recent price action, the share price of the company could continue to slide. A close below Rs 179 would be an early indication of further drop and a close below Rs 175 would be an added confirmation of bearish trend. As of now, existing holders could use price upmoves to reduce exposures. Fresh short positions may be considered with a stop at Rs 188.

Infosys Technologies (Rs 3,582.3): After a firm trend in the first two trading days, the scrip turned weak in the last couple of trading sessions. Going by the recent price pattern, the share price of the company could decline further to immediate support level at the Rs 3,350-3,400 range. A close below Rs 3,350 would have major negative implications. Currently, only a close above Rs 3,710 would negate the negative outlook. Existing holders could remain invested with a stop at Rs 3,370.

Satyam Computers (Rs 234.3): Similar to Infosys, the share price of Satyam too turned weak after some buoyancy on Wednesday. The near-term outlook for the scrip does not appear positive. A decline below Rs 230 would be an early indication of further bearish trend in the scrip. In the event of an extreme bearish scenario, the scrip could slide to the Rs 200-210 band in the near term. The price action in the next few days would be critical in deciding the degree of downside risk in Satyam.

(Note: The views expressed in this column are 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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