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B. Krishnakumar

ITC (Rs 770.85): As anticipated, the scrip ruled weak initially and moved to a low of Rs 751 on Tuesday. It, however, managed to close on a positive note on Friday despite the net drop in key market indices. The outlook for ITC continues to remain positive and a move past Rs 800 appears likely. Existing holders could remain invested with a stop loss at around Rs 735. Fresh buying (with a close stop loss) may also be considered by investors willing to take delivery.

Hindustan Lever (Rs 171.6): As anticipated, there was a short-term correction in the stock. The near-term outlook appears weak. The stock could drop to Rs 160-162 range and the long-term uptrend could resume thereafter. As mentioned in the earlier weeks, a move towards Rs 200 appears to be on the cards. Price declines could be used to build exposures in the stock. Fresh buying may be considered on a price move past Rs 182.

Infosys Technologies (Rs 3,096.05): The overall trend in the stock was bearish during the just-concluded week. The announcement of the quarterly results on July 10 could have a major influence on the stock as well as the overall market direction as well. Recent price pattern indicates that the stock could drop to lower levels. Only a close above Rs 3,400 would impart some sort of positive trend.

Satyam Computer (Rs 185.6): As expected the stock ruled weak and the outlook continues to remain bearish. A move towards the Rs 150-155 range appears likely in the near term. Only a move past Rs 198 would impart some sort of positive momentum in the counter. Existing holders could look for opportunities to reduce exposures. Fresh buying may be deferred.

Focus: The sharp rally in the pharmaceutical sector was the highlight of the week's trading. The likes of Dr.Reddy's Laboratories, Ranbaxy Laboratories, Orchid Chemicals, Shasun Chemicals and IPCA Labs have already been covered in recent weeks. The outlook for these stocks continues to remain positive. MNC pharma stocks such as Aventis Pharma, Glaxo SmithKline Pharma, and Pfizer could also seek higher levels. There is no compelling reason to dilute holding in these stocks in a hurry.

This week's focus is on a clutch of stocks such as IVRCL Infrastructure, Hindustan Oil Exploration, and Elder Pharmaceuticals. While the outlook for IVRCL and Hindustan Oil is discussed below, Elder Pharmaceuticals is covered under the Query Corner section of this page.

IVRCL Infrastructure (Rs 74.4): The stock could seek the Rs 90-92 range in the near term. A move past Rs 95 would impart extreme bullishness in the stock. Existing holders could remain invested while fresh buying may also be considered by investors willing to take delivery. Stop loss for long positions may be placed at Rs 65.

Hindustan Oil Exploration (Rs 37.6): The stock could move to the Rs 52-55 range in the near term. A move past Rs 41 would be an early indicator of a rally to this target zone. Existing holders could remain invested with a stop loss at Rs 30. Fresh long positions may also be considered with a stop loss at Rs 30.

Recommendation follow-up

Balaji Telefilms (Rs 68.55): The stock did not make any significant upside progress last week. However, last week's view of a rise to the Rs 78-80 range remains unchanged. Existing holders could remain invested while fresh buying may also be considered with a stop loss at Rs 60.

Sri Adhikari Brothers (Rs 82): Last week's view that the stock would move to the Rs 95-100 range remains valid. Existing holders could remain invested with a stop loss at Rs 72. A move past Rs 88 could be used to take fresh long positions with a stop loss at Rs 78.

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