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B. Krishnakumar

SBI (Rs 663.9): The expected short-term weakness in the stock materialised during the week. After dropping to a low of Rs 653, the stock closed marginally higher on Saturday. A close above Rs 690 would have positive implications and would help the stock move to the target zone of Rs 725-730. A close below Rs 640 would have negative implications. Hold with a stop-loss at Rs 640 and fresh exposures may be considered on a close above Rs 686. A close below Rs 640 would warrant dilution of holdings.

Reliance Ind (Rs 555): The stock managed to comfortably hold above the bearish trigger level of Rs 520 and also closed above the positive trigger level of Rs 540. This imparted strength and helped the stock post a sharp gain on Friday. The near-term outlook remains bullish and the stock appears on course to move to the target zone of Rs 575-580 that was mentioned last week. Hold with a stop-loss at Rs 530 for a portion of the holding and at Rs 520 for the balance. Partial profit-booking may be considered on a move to the Rs 575-580 range.

Tata Steel (Rs 353.3): The stock dropped to the first support zone at the Rs 340-345 range. Though it did breach the stop-loss level of Rs 348 during the intra-day trading on Friday, it managed to close above this level. The short-term outlook appears bearish and a close below Rs 343 would be a sign of weakness. Short positions may be considered on a close below Rs 343, with a price target of Rs 305-310. Stop-loss for short positions may be placed at Rs 358. A close above Rs 359 would impart strength and the stock could rally to the Rs 370-372 range subsequently.

Satyam Computer (Rs 465): The share price was confined to a narrow trading range last week. It, however, managed to hold above the stop-loss level at Rs 423. The near-term trend is bullish and the share price appears on course to move to the target zone of Rs 485-490. Remain invested with a stop-loss at Rs 423. Fresh long positions may be considered on a close above Rs 470, with a stop-loss at Rs 440.

Infosys (Rs 2237.2): The outlook is bullish and the share price could move to the Rs 2380-2400 band in the near term. Long positions may be considered on price weakness, with a stop-loss at Rs 2170. Shareholders may remain invested with a stop-loss at Rs 2120. Exposures may be enhanced on a close above Rs 2300, with a close stop-loss in place. The positive view would be negated if the share price closes below Rs 2100.

Follow-up

Cipla (Rs 288): The stock managed to hold ground and recorded a modest gain for the week. The near-term outlook remains bullish. The stock appears on course to move to the target zone of Rs 300-305. The positive view would be valid as long as the stock holds above Rs 270.

Investors may hold with a stop-loss at Rs 270 while fresh exposures may be considered on a move above Rs 296, with a stop-loss at Rs 280. A close below Rs 269 would blunt the positive outlook and would warrant dilution of holdings. A close above Rs 325 would confirm that the stock is in a long-term uptrend and exposures may be enhanced subsequently.

Arvind Mills (Rs 139.1): The stock was confined to a narrow trading range during the week. The long-term uptrend would resume on the completion of this corrective phase. As observed last week, investors who are comfortable with a "buy-and-hold" investment strategy may get opportunities to exit at the Rs 190-200 range.

Existing shareholders may remain invested with a stop-loss at Rs 120. Fresh exposures may be considered on price weakness, with a stop-loss at Rs 120. A close below Rs 120 would be a sign of weakness and would warrant dilution of holdings. Exposures may also be enhanced on a close above Rs 145, with a close stop-loss in place.

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