The Hindu Business Line : Further upside likely in Infosys, Satyam

NIFTY (1016.95): In sync with expectations, Nifty dropped below the earlier low of 982. After touching a low of 973.5, the index staged a recovery since Tuesday. The index is likely to move towards the 1025-1030 band in the near term. The overall outlook has not turned bullish as yet. The possibility of a slide below 973 cannot be ruled out at this point in time. Only a close above 1045 would negate the bearish outlook.

ITC (Rs 639): After a subdued trend in the early part of the week, the scrip staged a recovery in the last couple of days. The near-term outlook for ITC appears positive. The scrip appears to be headed towards the Rs 660-670 range. Existing holders could remain invested with a stop loss at Rs 619. Fresh buying may also be considered on intra-day declines by traders willing to take higher risk.

Hindustan Lever (Rs 150.5): As observed in earlier weeks, the stock dropped to the oft-repeated target zone of Rs.140-145. After sliding to a low of Rs 146, the scrip managed to stage a recovery during the week. However, the downtrend does not appear complete as yet. A further slide to the Rs 115-120 range appears to be on the cards. The bearish view would warrant a reassessment only if the scrip closes above Rs 166. Existing holders could use price upmoves to reduce exposures.

Infosys Technologies (Rs 4,299): After a drop below the stop loss level of Rs 4,130 (mentioned last week), the scrip managed to stage a sharp recovery to close at Rs 4,299. The near-term outlook for Infosys continues to remain bullish. A move towards the Rs 4,550-4,600 range appears to be on the cards. Existing holders could remain invested with a stop loss at Rs 4,150. Fresh buying may also be considered with a close stop loss. A move past Rs 4,600 could be used to book profit.

Satyam Computers (Rs 187.35): As expected, the share price of the company reversed direction right in the last week's projected target zone of Rs 170-175. After touching a low of Rs 172, the scrip staged a recovery to close at Rs 187.35 on Friday. The near-term outlook for Satyam appears positive. Existing holders could remain invested with a stop loss at Rs 171. Fresh buying may also be considered with close stop loss in place.

(Note: The analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. Analysis and price targets are based on the Elliott Wave Analysis. There is a risk of loss in trading)

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