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B. Krishnakumar

ITC (Rs 889.2): As anticipated, the stock ruled firm and moved past the target zone of Rs 850-860 that was mentioned last week. The outlook remains positive and the stock has the potential to yield a return of at least 25 per cent for a holding period in excess of six months. A break above Rs 960 could help the stock motor up sharply. Long-term investors can accumulate ITC on declines. Existing holders could remain invested with a stop loss at Rs 810.

HLL (Rs 189.1): The stock lacked momentum and was confined to a narrow trading range last week. Only a break out of this trading range would impart a meaningful trend. A close above Rs 201 would have positive implications while a drop below Rs 174 could lead to a further slide. Remain invested with a stop loss at Rs 174. A close above Rs 200 could be used to take fresh long positions with a close stop loss.

Infosys (Rs 4,629.6): Except for some action on Friday, the trading in this stock was lacklustre. A bearish Hanging Man pattern was completed on Friday in the Japanese Candle Stick chart. A drop below Rs 4400 would confirm the validity of the pattern and could impart short-term downtrend. Only a move past Rs 4,950 would impart bullishness. Existing holders could have a stop loss at Rs 4420. Fresh investments may be deferred.

Satyam Computer (Rs 281.8): After a relatively weak trend until Thursday, the stock saw a sharp upmove on Friday. Unlike Infosys, the pattern in this stock appears bullish. The close above the bullish trigger price of Rs 271 has now imparted short-term strength. A move to the Rs 292-295 range appears likely. A close above Rs 300 could help the stock target the next resistance at Rs 332. Remain invested with a stop loss at Rs 260.

Reliance Ind (Rs 470.6): The stock moved to the target zone of Rs 475-480 that was mentioned last week. The outlook remains bullish and a move to Rs 500 appears likely. The stock has now moved into unchartered territory and could move up sharply as a result. Existing holders could remain invested with a stop loss at Rs 445. A trailing stop may be employed on price upmoves.

Follow-up

IVRCL Infrastructure (Rs 83.6): After a sharp upmove on Monday, the stock ruled weak on the remaining days of the week. This, however, has not negated the view of a rally to the Rs 120-125 range. At present, the stock is in a consolidation phase. The uptrend would resume once this consolidation gets completed. Remain invested with a stop loss at Rs 74. A close above Rs 92 could be used to build long positions.

Sundaram Clayton (Rs 414.6): The stock turned weak after a sharp upmove on Monday. The overall outlook remains positive. The stock appears on course to move to the conservative target zone of Rs 500-520. Existing holders could remain invested with a stop loss at Rs 360. Fresh buying may also be considered with a stop loss at Rs 360. Intermittent price dips could be used to build exposures in the stock.

Focus of the week

ICICI Bank (Rs 222.8): The outlook for the stock appears positive. A move to Rs 300 appears likely. Long-term investors can accumulate the stock. In the near term, there is a possibility of a drop to the Rs 215-218 range. Evidence of support at this level could be used to add to existing holdings. Only a close below Rs 200 would negate the positive outlook.

Apollo Tyres (Rs 204.9): The stock has been recommended on quite a few occasions in the recent months. After a consolidation phase that lasted a couple of months, the stock managed to stage a sharp break out on Friday. The upside breakout was accompanied by a surge in trading volumes as well. The stock now appears to be headed towards the Rs 275-300 range. Investors willing to wait are likely to be handsomely rewarded.

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