Financial Daily from THE HINDU group of publications
Sunday, Apr 06, 2003
Financial Daily from THE HINDU group of publications Sunday, Apr 06, 2003 |
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Investment World
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Stock Markets Markets - Commentary Positive outlook for Syndicate Bank B. Krishnakumar
AFTER a sharp drop on Monday, the stock market sentiment improved in the remaining four trading days of the week. The shares from the technology and banking sector were prominent amongst the gainers of the week. The rally in the indices would have been even better but for the subdued trend in Hindustan Lever and ITC. Sensex (3167.7): As anticipated last week, the Sensex dropped below the earlier pivot low of 3049 on Tuesday and staged an impressive recovery thereafter. On the upside, a move towards the 3200-3225 range appears likely. However, the recent rally is not convincing enough to call an end to the underlying bearish trend. Going by the recent price movement, the Sensex is likely to drop below 3037 in a final leg of decline. At present, only a close above 3250 would warrant a re-look at the overall bearish outlook for the Sensex. The focus this week is on Syndicate Bank and Tata Engineering. The near-term outlook for both the stocks appears positive. Existing holders could remain invested while fresh buying may also be considered on intra-day price weakness. Syndicate Bank (Rs 19.25): Backed by a steady pick up in trading volumes, the share price of the company has been moving up steadily in the past few weeks. The scrip appears to be headed towards the Rs 23-25 band in the near term. Existing holders could remain invested while fresh buying may also be considered with a stop at Rs 16. Tata Engineering (Rs 165.55): The share price of the company could seek the Rs 185-190 level in the near term. A move past Rs 175 would be an early indicator of the bullish outlook for the scrip. Existing holders could remain invested with a stop loss at Rs 160. Fresh buying may also be considered (with a close stop loss in place) on a break above Rs 175. Recommendation follow-up Contrary to expectations, the share price of Tata Steel ruled strong. However, in the case of Canara Bank, the price movement was in line with expectations. Tata Steel (Rs 140.5): In contrast to last week's expectations of weak trend, the share price of the company ruled firm. This has, however, not negated the weak outlook. Only a close above Rs 146 would blunt the negative outlook. Last week's view of a slide to the Rs 120-125 range continues to remain as long as the scrip trades below Rs 146. Existing holders could have a trailing stop loss in place to protect unrealised gain or to reduce the risk of loss. Canara Bank (Rs 79.45): As observed last week, the share price of the company ruled firm and moved closer to the projected target price of Rs 82-85. The scrip appears on course to move towards this target zone. Existing holders could remain invested with a stop loss at Rs 73. A move past Rs 85 could be used to reduce exposures.
(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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