The Hindu Business Line : Positive trend in HLL, ITC

ITC (Rs 808.3): The stock managed to move towards the price target of Rs 810-820 that was mentioned last week. The outlook for ITC continues to remain bullish. The stock appears to be headed towards the Rs 850-860 range. Existing holders could remain invested with a stop loss at Rs 765. Long-term investors could use price dips to take exposure as the long-term outlook is bullish. Only a close below Rs 750 would blunt the positive outlook for the stock. A close below Rs 750 would warrant closure of existing long positions in the stock.

HLL (Rs 186.6): The share price of the company could seek higher levels in the near term. As observed in earlier weeks, the stock appears to be in the early stages of a major upward move. The move past the resistance level of Rs 190 has imparted bullish sentiment. Only a close below Rs 175 would warrant a re-look at the positive outlook. Existing holders could remain invested with a stop loss at Rs 168. A close above Rs 196 could be used to take fresh exposures with a stop loss at Rs 168.

Infosys (Rs 3,641.8): As anticipated, the share price moved towards the Rs 3,650-Rs 3,690 range and reversed trend thereafter. After touching a high of Rs 3,754, the stock turned weak on Friday. The near-term outlook does not appear too positive. A drop to the Rs 3,150-Rs 3,200 range appears likely. Only a close above Rs 3,900 would reverse the short-term bearish outlook. Existing holders could remain invested with a stop loss at Rs 3,500. Price upmoves could be used to trim exposures.

Satyam Comp (Rs 209.8): The stock is unable to break above the crucial resistance level at around the Rs 215-Rs 218 range. Even last week, the stock reversed direction at this price zone. The overall outlook continues to remain bearish. Existing holders could look for opportunities to reduce exposures. A close below Rs 190 would warrant liquidation of existing long positions in the stock. At present, only a close above Rs 220 would blunt the negative outlook.

Reliance Ind (Rs 381.7): The price movement in the scrip has been in line with expectations. The share price of the company appears headed towards the Rs 400 mark in the near term. Existing holders could remain invested with a stop loss at Rs 370. A move past Rs 400 could be used to book profits in a phased manner.

Recommendation follow-up

Dabur (Rs 65): Contrary to expectations, the share price of the stock ruled weak. This, however, has not negated the earlier bullish outlook. Last week's view of a rally to the Rs 75-78 range continues to remain valid. Existing holders could remain invested with a stop loss at Rs 62. A close above Rs 69 could be used to take long positions.

Flex Industries (Rs 34.3): As anticipated, the share price of the company moved to Rs 40 and turned weak thereafter. The overall bullish outlook remains unchanged. Only a close below Rs 30 would negate the positive outlook. Existing holders could remain invested with stop loss at Rs 30, while a close above Rs 41 could be used to take long positions.

Focus of the week

Shipping Corporation (Rs 98.5): The stock could seek higher levels in the near term. The overall outlook appears positive with a move to the Rs 110-115 range being the preferred view. Only a close below Rs 87 would negate the bullish outlook. Existing holders could remain invested with a stop loss at Rs 90.

Hindustan Oil Exploration (Rs 51.6): The share price of the company has now moved to the earlier mentioned (edition dated July 6) price target of the Rs 52-55 range. After touching a high of Rs 53.55, the stock closed at Rs 51.6 on Friday. The overall outlook for the stock continues to remain bullish with a move towards Rs 65-70 being the preferred view. Existing holders could remain invested with a stop loss at Rs 45.

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