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ITC (Rs 804.6): In line with last week's expectations, the stock ruled weak and dropped to a low of Rs 800 on Friday. While a short-term rally to the Rs 840-850 range is not ruled out, the stock appears to be headed towards the target zone of Rs 785-790 mentioned in the previous week. Long-term holders could remain invested, as the overall trend appears bullish. Fresh buying may be considered on evidence of support at the Rs 785-790 range. A close below Rs 750 would have long-term negative implications and would warrant closure of long positions.

HLL (Rs 184.8): The stock was stuck in a narrow range last week. It failed to move past the positive trigger price of Rs 200. Going by the recent price action, a drop to the Rs 175-178 range appears likely. While the overall trend continues to remain positive, a drop below Rs 170 would have negative implications. Existing holders could remain invested with a stop loss at Rs 170. Evidence of support around the Rs 172-175 range could be used to build fresh exposures.

Infosys (Rs 4,161.9): The stock moved in line with last week's expectations. It managed to move to the target price of the Rs 4,450-4,500 range and turned weak thereafter. The near-term trend is bearish and a drop to the Rs 4,000-4,020 range appears likely. Only a close above Rs 4,700 would push the scrip back into the bull orbit. On the other hand, a close below Rs 3,750 would have negative implications. Existing holders could remain invested with a stop loss at Rs 3,700.

Satyam Computer (Rs 237.5): The stock was stuck in a relatively narrow zone last week. After touching a high of Rs 264, the scrip turned weak on Tuesday. The near-term trend hinges on the price action in the next few days. A close above Rs 270 would impart positive outlook, while a close below Rs 218 would have negative implications. Existing holders could use price upmoves to reduce exposures. Fresh buying may be avoided for the time being.

Reliance Ind (Rs 417.8): The weakness in this stock was instrumental behind the drop in the key market indices. The stock reversed direction after moving closer to the crucial resistance level of Rs 452. After touching Rs 442, the stock turned weak. A close above Rs 460 would impart positive trend, while a drop below Rs 365 would negate the bullish outlook.

Follow-up

ABB (Rs 471.9): The share price turned weak after a strong trend on Monday. Though the stock breached the support level at Rs 495, the overall outlook continues to remain bullish. As mentioned last week, a move towards the Rs 575-600 range is still on the cards. However, in the near-term, a drop to the Rs 430-435 range is not ruled out. The expected rally to the above-mentioned range would resume thereafter. This stock is a good long-term play. Investors willing to be patient are likely to be rewarded handsomely.

Focus of the week

United Phosphorous (Rs 380.8): The stock appears to be headed towards lower levels of the Rs 345-350 range in the near term. Exis0ting holders could reduce exposures and contemplate re-entry at a later date. Only a close above Rs 440 would impart positive trend.

Kotak Mahindra Bank (Rs 244.7): As observed earlier (edition dated February 2, 2003), the stock has managed to move to the then-mentioned target price of Rs 250. The near-term outlook appears positive, with a move towards the Rs 265-270 range being the preferred view. Existing holders could remain invested with a stop loss at Rs 200. A close above Rs 255 could be used to take fresh exposures.

Bongaigaon Refineries (Rs 71.4): The outlook for the stock appears positive. A move past Rs 76 could be used to take fresh exposures with a stop loss at Rs 66.5. A drop below Rs 66.5 would warrant dilution of stake as the stock could drop to the Rs 57-60 range thereafter. Existing holders could remain invested with a stop loss at Rs 66.5.

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