The Hindu Business Line : Buy Century Textiles on declines

ITC (Rs 832.3): The stock ruled firm in line with last week's expectations. The outlook for ITC continues to remain positive. As mentioned last week, a move towards the Rs 850-860 range appears likely. Existing holders could remain invested with a stop loss at Rs 785. Long-term investors could use price dips to take exposure as the outlook is bullish. Only a close below Rs 765 would blunt the positive outlook for the stock.

HLL (Rs 185.6): The stock failed to close above the bullish trigger price of Rs 196, which is not a positive sign. There is possibility of a short-term drop towards the Rs 150 mark if the scrip drops below Rs 170. The overall long-term outlook continues to remain bullish. A break below Rs 170 is only likely to temporarily stall the uptrend and would not completely negate the positive view. On the upside, a break above Rs 196 would be a critical factor to reinstate the upward trend.

Infosys (Rs 3,925.9): Contrary to expectations, the stock displayed positive trend last week. The close above the resistance level of Rs 3,900 has now imparted bullishness. The stock could now rally towards the next resistance level at the 4450-4500 range. Only a close below 3390 would negate the positive outlook. Existing holders could remain invested with a close stop loss. Price move past Rs 4,450 could be used to pare exposures in a phased manner.

Satyam Computer (Rs 227.4): Similar to Infosys, Satyam too managed to move above its resistance level. The close above Rs 220 on Thursday has imparted positive trend. The near-term outlook for the stock appears positive. The scrip could target the Rs 245-250 range in the forthcoming week. For the moment, only a close below Rs 214 would negate the positive outlook and could push the stock into a narrow trading range. Existing holders could remain invested with a stop loss at Rs 214.

Reliance Ind (Rs 400.7): The share price of the company has moved in sync with earlier expectations. As anticipated, stock has managed to move past the price target of Rs 400. Existing holders could remain invested with a stop loss at Rs 375 as the trend continues to remain positive. A move towards the Rs 420-425 range appears likely. A rally past Rs 420 could be used to book profits in a phased manner.

Follow-up

Shipping Corporation (Rs 99.3): The stock appears on course to move towards the target price of Rs 110-115 that was mentioned last week. Existing holders could remain invested with a stop loss at Rs 87 while a move past Rs 104 could be used to take fresh equity exposures in the company.

Hindustan Oil Exploration (Rs 54): After a strong rally in the first half of the week, the stock turned weak in the last couple of trading sessions. This, however, has not negated last week's view of a rally to the Rs 65-70 range. Existing holders could remain invested with a stop loss at Rs 44. A close above Rs 59 could be used to take fresh exposures in the company.

Focus of the week

Tata Telecom (Rs 151.2): The overall outlook for the stock appears bullish. The share price of the company appears to have the potential to move past the Rs 200 mark in the near term. Existing holders could remain invested with a stop loss at Rs 121; long-term investors may consider fresh buying. A move towards the Rs 210-215 range could be used to book profits.

Century Textiles (Rs 110.7): The stock appears to have significant upside potential from current levels. A move towards the Rs 150-155 range appears likely. However, the stock could seek slightly lower levels in the near term. A drop to the Rs 95-100 range cannot be ruled out. Existing holders could remain invested.

Evidence of support at around the Rs 100 mark could be used to take fresh exposures. Risk-averse investors could wait for a break above Rs 123 before taking long positions in the stock.

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