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B. Krishnakumar

ITC (Rs 735.6): After a drop below the bearish trigger price of Rs 730, the stock staged a sharp recovery on Thursday. It is now stuck in a trading range. The momentum required to sustain a steady move in either direction is lacking at the moment. While the long-term trend is still positive, the stock has to move above Rs 790 before any meaningful uptrend can resume. On the contrary, a close below Rs 720 would lead to further decline. Existing holders could remain invested with a stop loss at Rs 720.

HLL (Rs 169.6): As expected last week, the stock ruled weak and dropped to a low of Rs 146 on Tuesday. The near-term trend has now turned positive. It appears on its way towards the price target of Rs 200. Only a drop below Rs 145 would negate the positive outlook. Existing holders could remain invested with a stop loss at Rs 146. Fresh buying may also be considered with a close stop loss in place.

Infosys (Rs 3,516.7): After a drop on the first two days of the week, the stock managed to recover ground on the next three days. The near-term outlook appears positive. A move past Rs 3,700 would be an early indicator of the onset of bullish trend. Only a close below Rs 3,200 would negate the positive outlook. May remain invested with a stop loss at Rs 3,200. Fresh buying may be considered on a move above Rs 3,700.

Satyam Comp (Rs 193.3): As anticipated, the scrip ruled weak and dropped to a low of Rs 162.85 on Tuesday. The announcement of quarterly results imparted bullish momentum. However, a sustained uptrend would emerge only if the stock closes above Rs 215. As of now, existing holders could remain invested with a stop loss at Rs 160. Fresh buying may be deferred for the time being.

Reliance (Rs 349.6): The stock managed to record a smart recovery in the last couple of days. The near-term outlook has now turned positive. A move towards the Rs 370-375 range appears likely. A close above Rs 355 would be an early indicator of the rally to the range. Existing investors could remain invested with a stop loss at Rs 325.

Recommendation follow-up

Indian Rayon (Rs 159.3): The price movement in the stock was in contrast to last week's expectations. Contrary to anticipation, the stock ruled firm and has now negated the earlier bearish view. A close above Rs 170 would have extreme positive implications. Existing holders could remain invested with a stop loss at Rs 130. Fresh buying may also be considered with a close stop loss.

Cosmo Films (Rs 99.5): The stock failed to drop below the first bearish trigger price of Rs 93. After touching a low of Rs 93.5, the stock staged a comeback. The near-term outlook for the stock appears positive. A move to the Rs 120-125 range appears likely. Existing holders could remain invested with a stop loss at Rs 93. A move past Rs 109 could be used to take fresh exposures.

Focus of the week

Hindustan Motors (Rs 13.4): As mentioned a few weeks ago, the stock appears to have the potential to move past the Rs 20 mark. After touching a high of Rs 16.9, the share price has been in a downward corrective phase, which appears to have been completed on July 22. Existing holders could remain invested with a close-only stop loss at Rs 12.4. A close above Rs 14.1 could be used to take fresh long positions with a stop loss at Rs 12.4.

Bongaigaon Refineries (Rs 40): The stock could move past the Rs 50 mark in the near term. Only a close below Rs 35.7 would negate the positive view. Existing holders could remain invested with a stop loss at Rs 35.7 while a move past Rs 42.5 could be used to take fresh exposures.

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