The Hindu Business Line : Bullish outlook for HDFC

ITC (Rs 1,268.4): The stock ruled weak as anticipated last week. The recent downtrend does not appear complete. This, however, has not negated the earlier view of a rally to Rs 1,450-Rs 1,500 range. The immediate support lies at Rs 1,220-Rs 1,230 range. After testing this range, the share price is likely to resume the long-term uptrend.

Existing holders may remain invested with a stop-loss at Rs 1,190. A drop below Rs 1,190 would blunt the positive outlook.

Cipla (Rs 284.1): In line with the overall bearish market sentiment, this stock too ruled weak. The near-term outlook appears weak and the stock could drop to Rs 275-Rs 276 range. The recent decline, however, does not appear to be a trend reversal. From a long-term perspective, the stock's earlier view of a rally to Rs 395-Rs 400 range is still valid.

A move past Rs 310 would impart strength. The positive outlook would be negated if the stock drops below Rs 270. Hold with a stop loss at Rs 270.

Infosys (Rs 2,030.7): In line with expectations, the stock ruled weak. The downward move does not appear complete. After a short-term upward move, the stock is likely to drop to lower levels of Rs 1,950-Rs 1,970 range. A drop below the immediate support level at Rs 2,020 would impart weakness.

Holders of profitable positions may use short-term rally to reduce exposure. At the moment, only a move past 2130 would impart positive momentum.

Reliance Ind (Rs 499.4): Contrary to expectations, the stock ruled weak and also dropped below the negative trigger price of Rs 510. This has negated the positive view expressed last week. The stock is likely to test the recent low of Rs 487.

A drop to Rs 475-Rs 480 range appears likely. The bearish view would be in force as long as the stock rules below the positive trigger level of Rs 535. A move past Rs 535 would impart bullish momentum. Hold with a stop loss at Rs 490 and use price rally to reduce exposures.

HDFC (Rs 762): As anticipated, the stock went into a corrective phase last week. After hitting a low of Rs 746.1, the share price recovered ground on Thursday. There appears to be little downside risk. The long-term outlook remains bullish. A move above Rs 781 would result in the resumption of the uptrend. Investors may use price dips to add this stock to the portfolio. Stop-loss for long positions may be placed at Rs 730.

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