The Hindu Business Line : Reliance may touch Rs 490

Reliance Ind (Rs 529.2): The stock ruled weak as expected last week. It also moved to the target zone of Rs 520-525. The downtrend does not appear complete. A drop to the Rs 490-500 range appears likely. The occurrence of a "head-and-shoulder" pattern in the daily price chart confirms the bearish outlook. If the pattern is valid, the downside target should be in the Rs 475-480 range. Only a close above Rs 555 would impart positive trend. Look to reduce exposures; fresh buying may be avoided.

ONGC (Rs 788.1): The stock is yet to get into a trending mode. The share price continues to be stuck in a range and is likely to rule weak in the near term. A drop to the Rs 755-760 range appears likely. This short-term bearish view would be confirmed if the stock declines below Rs 783. Existing holders may reduce exposures. Only a move past Rs 840 would impart bullishness. Fresh buying may be avoided.

Cipla (Rs 279.5): The stock moved closer to the target zone of Rs 255-260 range that was mentioned last week. In the near term, a move past Rs 285 would impart positive trend; a drop below Rs 270 would have bearish implications. The long-term positive trend would reassert itself once the short-term downward trend is over. Investors may hold with a stop-loss at Rs 263. Investors interested in long positions may wait till such time a bullish trend emerges.

Infosys (Rs 1906.4): The stock moved in line with expectations. It moved comfortably past the target zone of Rs 1830-1840 that was mentioned last week. In the weekly charts, the stock has managed to move past quite a few resistance levels, which has positive implications from a long-term perspective. The stock is likely to move to the Rs 2000-2010 range shortly. Hold with a stop-loss at Rs 1860. Those who have entered at lower levels and willing to take additional risk may place the stop-loss at Rs 1790.

Hindalco Industries (Rs 1187.1): The recent downtrend does not appear complete as yet. A drop to the Rs 1140-1150 range appears likely. There is no reason to take exposures at present levels. Look to reduce exposures; fresh buying may be considered at lower levels. Only a close above Rs 1280 would impart strength. Till such time, it would be safer to pare exposures on price rally.

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