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B. Krishnakumar

ITC (Rs 757.4): The stock could see some subdued price action in the following week. A decline below Rs 745 would have bearish implications and could pave the way for a drop to the Rs 710-720 range. Only a close above Rs 790 would now reinstate the bullish overtone. The stock moved closer to the price target of Rs 800, mentioned last week. The stock touched a high of Rs 784 on Wednesday and turned weak thereafter. Existing holders could reduce exposures. Long-term investors can have a stop loss at Rs 745 while a trailing stop loss could be used to protect unrealised gains.

Hindustan Lever (Rs 171.2): The price movement in the stock was in sync with last week's expectations. As anticipated, the stock moved towards the Rs 160-162 range. While the stock could test the Rs 160-162 range, such declines could be used to take long positions, as the long-term trend is still bullish. 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. Existing holders could remain invested with a stop loss at Rs 160.

Infosys Technologies (Rs 3,515): The quarterly performance declared on Thursday provided bullish momentum in the stock. The share price managed to comfortably move past the resistance level of Rs 3,400 that was mentioned last week. As expected, the break of this level imparted positive trend and pushed the scrip to a high of Rs 3,694 on Thursday. The scrip now appears to be headed towards the Rs 3,900-4,000 range in the near term. A break above Rs 3,750 would confirm such a possibility while a breach of the support level at Rs 3,300 would impart bearishness. Existing holders could remain invested with a stop loss at Rs 3,300.

Satyam Computer (Rs 198.6): The stock ruled weak on the first few days of the week. However, the overall positive sentiment towards tech stocks pushed the scrip past the resistance level of Rs 198 on Thursday. The positive trend would continue if the stock moves above Rs 210. However, a drop below Rs 178 would lead to the resumption of the bearish trend.

Focus: Profit booking and a resultant decline in mid-cap and quite a few large-cap stocks was the highlight of the week's trading. The price pattern in a host of mid-cap stocks indicates the onset of a corrective phase. Investors who are `in the money' could book at least partial profit. It would be better to stay clear of small and mid-cap stocks until such time the earlier positive trend firmly re-establishes itself.

The focus this week is on Glaxo SmithKline Pharma and Aban Lloyd Chiles. While the near term outlook for Glaxo India appears bearish, the share price of Aban Lloyd could seek higher levels.

Glaxo SmithKline Pharma (Rs 362.85): Covered earlier (edition dated March 2,2003), the stock has comfortably moved past the then mentioned target price of Rs 350. The stock now appears to be headed towards the Rs 335-340 range in the near term. Existing holders could reduce exposures. Evidence of support at around Rs 340 could be used take fresh exposures.

Aban Lloyd Chiles (Rs 293.3): The stock appears to have the potential to the immediate target range of Rs 345-350. Existing holders could remain invested with a stop loss at Rs 265. Long positions may be contemplated on a move past Rs 320 (with a stop loss at Rs 275).

Recommendation follow-up

IVRCL Infrastructure (Rs 71.7): Last week's view that the stock could seek the Rs 90-92 range, continues to remain valid. After a strong upmove on Monday, the stock ruled weak and managed to stage a recovery on Friday. A move past Rs 81 would impart bullishness. Existing holders could remain invested with a stop loss at Rs 61. A move past Rs 81 could be used to take fresh long positions with a close stop loss in place.

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