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B. Krishnakumar

Reliance Ind (Rs 527.7): The anticipated short-term uptrend materialised during the week and the stock moved closer to the target zone of Rs 562.-562.

After touching a high of Rs 559.6, the stock turned weak on Wednesday. The near-term outlook is bearish and a drop below Rs 515 would indicate that the stock is headed towards Rs.490-495 range. The stock faces resistance at Rs 534-538 range. Look to reduce exposures and use price rally to take short positions with a stop-loss at Rs 546. Short positions may be enhanced on a drop below Rs 515.

Infosys (Rs 1,887.4): The stock ruled weak and the first resistance level of Rs 2,010 did a fine job of containing the upward move.

The share price has also dropped to the target zone of Rs 1,880-1,900 range. The near-term outlook remains bearish. A drop to Rs 1,845-1,850 range appears likely. In the longer-term charts, there is a possibility of a drop to Rs 1,775-1,785 range. The bearish outlook would be negated if the stock closes above Rs 1,950.

Tata Power (Rs 346.9): Contrary to expectation, the stock ruled weak and dropped to a low of Rs 336.5 on Friday. A close below Rs 334 would mark the onset of a bearish trend and could push the price to Rs 300-305 band. Remain invested with a stop-loss at Rs 333 and use a trailing stop-loss in the event of price rally.

On the upside, the stock faces resistance at Rs 348-350 band. Aggressive traders may consider short positions on a move towards Rs 348-350 range and have a stop-loss at Rs 362.

Hindustan Lever (Rs 137.7): The stock staged a breakout on the upside of the congestion zone in which it had been stranded for several weeks. It also moved past the resistance zone at Rs 137-138. These factors indicate that the stock is in an accumulation phase. The strong close on the monthly charts is another positive indicator. There is a case for the start of a bullish trend. This view would be valid as long as the stock holds above Rs 130.

A close above Rs 143 would confirm the start of a new upward move. Hold with a stop-loss at Rs 130. Fresh exposures may be considered on declines, with a stop-loss at Rs 130. A close above Rs 143 may be used to add to long positions.

Satyam Computer (Rs 399.4): The stock moved past the target zone of Rs 416-420 and turned weak subsequently. The near-term outlook is bearish and a drop to the Rs 365-370 range appears likely.

Short positions may be considered on price rally towards the resistance zone of Rs 406-410. Stop-loss for short positions may be placed at Rs 418. Holders of long positions may reduce exposures on a move towards the resistance zone.

Follow-up

Jindal Saw (Rs 298.6): The stock moved in line with expectations. The anticipated short-term correction materialised and the stock dropped to a low of Rs 295 on Friday. The long-term view would remain bullish as long as the stock holds above Rs 285.

Long positions may be considered with a stop-loss at Rs 293. Risk-seeking investors may have the stop-loss at Rs 285. A breach of Rs 285 would result in a drop to Rs 245-250 range. This would not, however, negate the long-term positive outlook; it would just delay the expected move towards the target zone of Rs 355-360.

Mahavir Spinning (Rs 338.5): The stock ruled firm and moved to the first target zone of Rs 348-352. After touching a high of Rs 351.1, the stock closed at Rs 338.5 on Friday. The long-term outlook is bullish and a move to Rs 395-400 range appears likely.

Long-term investors may remain invested with a stop-loss at Rs 300. Fresh exposures may also be considered on price weakness, with a stop-loss at Rs 300.

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