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B. Krishnakumar

SBI (Rs 649.2): The stock has recovered after a sharp sell-off during March and April. The near-term trend appears positive. It appears to be headed towards the immediate target zone at Rs 670-675. The positive outlook would warrant a review if the stock closes below Rs 620. A close below Rs 600 would impart bearishness. Remain invested with a stop-loss at Rs 620. Fresh exposures may be considered with a stop-loss at Rs 629 if the stock closes above Rs 655.

Reliance Ind (Rs 520.5): As anticipated last week, the stock turned weak on the breach of the support level at Rs 533. The only positive aspect was that it closed above the bearish trigger level of Rs 520. A close below this level would impart weakness and the stock could drop to the Rs 495-500 range subsequently. The recent price patterns suggest that the negative trigger level would be breached and the stock would slide to the Rs 495-500 range. Short positions may be considered with a stop-loss on a close below Rs 519.

Tata Steel (Rs 355.6): The stock has been languishing in a trading zone in the recent weeks. An upside move is likely to face resistance at the Rs 380-382 range. A close below Rs 330 would impart weakness that could push the stock to the Rs 275-280 range. Remain invested with a stop-loss at Rs 330. Use price rally to the Rs 380-382 range to liquidate holdings. Fresh buying may be avoided while short positions may be considered on a close below Rs 330. Those with high-risk appetite may consider short positions with a stop-loss at Rs 370, when it closes below Rs 350.

Satyam Computer (Rs 443): The stock managed to hold above the stop-loss level of Rs 415. The Rs 458-460 range appears likely. Remain invested with a stop-loss at Rs 430. Fresh long positions may be considered on a close above Rs 448, with a close stop-loss in place. A close below Rs 430 would negate the positive outlook while a close below Rs 420 would impart a bearish trend.

Infosys (Rs 2142.5): The recent price action indicates that the share could face resistance at the Rs 2220-2230 range. A reversal from this range would result in the completion of the right shoulder of a bearish "head and shoulder" pattern. A subsequent drop below Rs 1860 would complete the formation of this pattern. The implications are that the stock could then slide to the Rs 1400-1500 range. The price movement in the next few weeks would have significant implications for the medium trend.

Follow-up

SRF (Rs 150.4): After an upward move on Monday, the stock remained stuck in a trading range in the remaining four trading sessions. It appears on course to the target zone of Rs 165-170 that was mentioned last week.

The positive view would be valid as long as the stock holds above the stop-loss level of Rs 124. Fresh exposures may be considered on price weakness with a stop-loss at Rs 124. Exposures may be enhanced on a close above Rs 155. Investors may sell at least a portion of their holdings once the stock moves to the first target zone at Rs 165-170.

FDC (Rs 46.8): Last week's positive view for the stock remains unaltered. The share ruled firm and appears to be headed towards the first target zone of the Rs 52-55 range. Holders of long positions may have the stop-loss at Rs 38. Fresh exposures may also be considered with a stop-loss at Rs 42, once the stock closes above Rs 48. Partial profit booking may be considered if the stock faces resistance at the target zone of Rs 52-55. A close below Rs 38 would warrant dilution of exposures.

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