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B. Krishnakumar

SBI (Rs 705): The price action was in line with expectations. The stock dropped to the target zone of the Rs 660-665 range and turned direction subsequently. The share price also closed above the positive trigger level of Rs 690, which has negated the earlier bearish view. The near-term outlook is positive and a move to the Rs 755-760 range appears likely. Remain invested with a stop-loss at Rs 670; fresh long positions may be considered on price weakness, with a stop-loss at Rs 670. Partial profit booking may be considered on a move to the target zone.

Reliance Ind (Rs 639.7): The stock moved to the target zone of Rs 675-680 that was mentioned last week. It faces stiff resistance at the Rs 680-685 range. Only a close above this range would push the stock to the next leg of the rally at the Rs 700-710 range. Holders of long positions may continue to do so, with a stop-loss at Rs 610. Partial profit booking may be considered on evidence of resistance at the Rs 700-710 band. Fresh long positions may be avoided.

Tata Steel (Rs 344): The stock was weak as anticipated and also dropped to the target zone of Rs 348-352. After dropping to a low of Rs 335, the stock recovered to close at Rs 344 on Friday. The share price could recover to the immediate resistance zone at the Rs 358-365 range. Remain invested with a stop-loss at Rs 332. As observed last week, a convincing upward trend would take shape only when the stock closes above the crucial resistance level at Rs 385. Until such time, a drop to the earlier target zone of Rs 305-310 would be the preferred view.

Satyam Computer (Rs 504.1): After moving towards the support zone at the Rs 470-475 range, the stock has been in a recovery since Wednesday. The near-term outlook hinges on the price movement in the next few days. A close above Rs 520 would impart strength and the stock could move to the Rs 535-540 range subsequently. On the other hand, a close below Rs 480 would impart weakness and the stock could drop to the Rs 455-460 range. Shareholders may remain invested with a stop-loss at Rs 480.

Infosys (Rs 2,351): The stock dropped to a low of Rs 2,285 on Wednesday and recovered ground subsequently. The near-term outlook appears positive. A move to the Rs 2,450-2,470 range appears likely. A close above Rs 2,380 would confirm the positive outlook and would help the stock move to the target zone of Rs 2,450-2,470. Hold with a stop-loss at Rs 2,280; fresh exposures may be considered on a close above Rs 2,380. A trailing stop-loss may be used in the event of a sustained upward move.

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Godrej Industries (Rs 228): Except for a strong move up on Monday, the stock remained stuck in a range in the remaining days of the week. This, however, has not negated the positive outlook for the stock. As observed last week, the long-term outlook remains bullish and the share price appears on course to move to the target zone of the Rs 295-300 range.

The positive view would be invalidated if the stock closes below the Rs 180 mark. Shareholders may remain invested with a stop-loss at Rs 190. Fresh exposures may also be considered on price weakness, with a stop-loss at Rs 190. Exposures may be enhanced on a close above Rs 247, with a stop-loss at Rs 220.

Tata Tea (Rs 637): There is no change in the view expressed last week. The long-term trend is bullish and the stock appears to be headed towards the target zone of the Rs 680-700 range. The uptrend would be in force as long as the stock holds above Rs 565.

Remain invested with a stop-loss at Rs 603. Fresh exposures may be considered on a move past Rs 645, with a stop-loss at Rs 615. Investors who have entered at lower levels may remain invested with a stop-loss at Rs 565. A close below Rs 565 would warrant dilution of holdings.

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