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B. Krishnakumar

ITC (Rs 744.9): As anticipated, a subdued trend prevailed in the counter last week. The stock dropped below the support level of Rs 745 on Tuesday and managed to recover ground as the week progressed. The stock is critically poised at the moment. A break below Rs 730 would have negative and a move past Rs 771 would have positive implications. Existing holders could remain invested with a stop loss at Rs 730. The overall bullish trend is likely to resume on the completion of the correction.

HLL (Rs 152.4): The price broke below the crucial level of Rs 160 that was mentioned last week. A bearish trend ensued thereafter. Taking into account the recent price pattern and the momentum behind that, the decline does not appear complete as yet. Fresh buying may be deferred as the stock appears to have further downside risk. At the moment, only a move past Rs 170 would reinstate a positive trend.

Infosys (Rs 3,389.4): The stock was confined to a relatively narrow trading range. Neither did it break above the bullish trigger price of Rs 3,750, nor did the share price drop below the bearish price trigger of Rs 3,300. The near-term trend in the stock appears weak. Only a break above Rs 3,750 would impart positive momentum.

On the other hand, a drop below Rs 3,300 would have negative implications and could pave the way for a drop to the Rs 2,800-2,900 range.

Satyam Computer (Rs 173.3): The stock declined below the negative trigger price of Rs 178. As a result, the near-term trend has now turned bearish. Though a retracement to the Rs 185-190 range is not ruled out, the overall downward trend is likely to reassert itself. Only a move past Rs 210 would impart positive trend. A drop to the Rs 120 range is not ruled out at this point in time.

Reliance Ind (Rs 339.2): The near-term outlook for the stock does not appear too positive. The share price has met with resistance right at the Fibonacci target zone of Rs 348-350. Only a surge past this resistance zone will impart some sort of positive trend. Till such time, a drop to the Rs 305-310 range would be preferred view.

<109,95>Recommendation follow-up<109>

Glaxo SmithKline Pharma (Rs 372.95): The price movement of the company was confined to a narrow range last week. The previous week's view of a drop to the Rs 335-340 range remains valid. A drop below Rs 354 would be an indicator of a drop to the range. Existing holders could have a stop loss in place at Rs 335. Evidence of support at around Rs 335 could be used to take fresh exposures.

Aban Lloyd Chiles (Rs 286.8): The share price of the company oscillated between the bullish trigger price of Rs 320 and the bearish trigger price of Rs 265. The earlier view of a rally to the Rs 345-350 range is still valid. Only a drop below Rs 270 would blunt such a possibility. Remain invested with a stop loss at Rs 270. Fresh long positions may be contemplated on a move past Rs 320.

Focus: A steady bout of profit booking led to a drop in share price of quite a few mid-cap companies that have appreciated sharply over the past few weeks. The focus this week is on Indian Rayon and Cosmo Films.

Indian Rayon (Rs 137.7): The near-term trend appears weak. A drop to the Rs 115-120 range appears likely. Existing holders could use price upmoves to reduce exposures. Evidence of support at around Rs 120 could be used to take fresh exposures.

Cosmo Films (Rs 98.65): The stock could drop to the Rs 77-80 range in the near term. A drop below Rs 93 would be an early confirmation of the possibility of a drop to this range. Only a move past Rs 122 would negate the short-term bearish view.

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