The Hindu Business Line : Sustained weakness in HLL

NIFTY (924.3): The overall market sentiment remained bearish during the just concluded week. While the near-term outlook appears slightly positive, the major trend continues to remain weak. A move past 934 would impart short-term strength, which could pave the way for a move to the 955-960 range.

However, the overall outlook continues to remain bearish. The earlier view of a slide to the 850-860 range continues to remain valid. Existing holders of short positions could have a trailing stop loss in place to protect unrealised profit. A move past 950 could be used to take fresh short positions. Alternatively, a drop below 920 could also be used to take short positions with a close stop loss in place.

ITC (Rs 668): Contrary to expectations, the share price of the company ruled weak. This, however, has not negated the earlier view of a rise to the Rs 725-750 range. The move towards this range would commence once the ongoing correction gets completed. Existing holders could remain invested while price declines could be used to take fresh long positions in ITC.

Hindustan Lever (Rs 135.9): As anticipated, the scrip ruled weak. The overall outlook continues to remain bearish with a drop to the oft-repeated target zone of Rs 115-120 being a distinct possibility. Existing holders could reduce exposure while fresh buying may be avoided. Price upmoves could be used to take short positions with a close stop loss in place. Fresh buying may be avoided.

Infosys Technologies (Rs 2,909.9): The scrip was confined to a narrow range last week. The recent price pattern indicates the possibility of a short-term uptrend. A move towards Rs 3,200-3,300 appears to be on the cards. Existing holders could remain invested with a stop loss at Rs 2,720. Move past Rs 3,050 could be used to take long positions with a price target of Rs 3,200. Alternatively, a drop below Rs 2,700 (without the breach of Rs 3,050) could be used to take short positions with a close stop loss in place.

Satyam Computers (Rs 163.35): The overall outlook for the scrip continues to remain bearish. However, in the near term, the scrip could move in a narrow band before the downward trend re-establishes itself. As of now, the scrip could face resistance at the Rs.168-170 range. Existing holders could reduce exposures on price upmoves while fresh buying may be avoided.

(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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