The Hindu Business Line : Bullish outlook for SBI

SBI (Rs 800.8): This stock was among the top performers of the past week. The share price ruled firm and also moved well past the target zone of Rs 755-760 that was mentioned earlier. The short-term outlook remains bullish and a move to the Rs 840-845 range appears likely. Remain invested with a stop-loss at Rs 740. In the event of a steady upward move, the stop-loss may trail the market action. Partial profit booking may be considered if the stock faces resistance at the Rs 855-860 range.

Reliance Ind (Rs 702.9): The better-than-expected quarterly performance imparted bullishness to the stock. As anticipated, the stock ruled firm and also moved to the target zone of Rs 700-710. The outlook remains bullish and the stock could move to the next major target of the Rs 760-770 range. Though the recent surge in price could result in a short-term correction, such dips would be an opportunity to buy the stock. The positive trend would be negated if the share price closes below the stop-loss level of Rs 670. Hold with a stop-loss at Rs 669. Fresh exposures may also be considered on price weakness, with a stop at Rs 669.

Tata Steel (Rs 368.2): The stock turned weak just ahead of the target zone of Rs 400-410. The market appears to be disappointed with the first quarter earnings growth reported by the company. This was reflected in the sharp drop in price over the past couple of trading sessions. The near-term outlook would be bullish if the stock holds above Rs 360. A drop below this level would validate our earlier bearish view of a drop to the Rs 300-310 range. A failure to move past the resistance level at the Rs 372-375 range and the subsequent drop below Rs 360 would confirm the bearish view.

Satyam Computers (Rs 521.6): The price action was bereft of momentum and the stock was confined to a trading range. The earlier view of a rally to the Rs 550-555 range is still valid. Fresh exposures may be considered on a close above Rs 540, with a stop-loss at Rs 510. Shareholders may remain invested with a stop-loss at Rs 505. Reduce exposures on price rally past the target zone.

Infosys (Rs 2269.2): The stock appears on course to move to the target zone of the Rs 2450-2470 range mentioned a few weeks ago. The strong move on Friday could be an early indicator of the next phase of the upward move. The positive outlook would be negated if the stock closes below Rs 2170. Remain invested with a stop-loss at Rs 2170. Fresh long positions may also be considered on a move above Rs 2320, with a stop-loss at Rs 2230.

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Bombay Dyeing (Rs 356.9): The stock staged a recovery on Friday after having ruled weak in the previous three days of the week. This has, however, not affected the earlier positive view. The stock appears on course to move to the target zone of Rs 415-420.

The short-term positive view would be in force as long as the price stays above Rs 330. A close below this level would warrant dilution of holdings and a drop below Rs 320 would push the stock into a short-term bearish orbit. This would only delay the start of the next leg of the rally towards the target zone and would not completely negate the long-term bullish pattern on the charts.

Glenmark Pharma (Rs 309): The price action was lacklustre. The stock was confined to a narrow trading zone of about Rs 10. The long-term outlook remains bullish. The stock appears set to head towards the target zone the Rs 355-360 range shortly.

The positive outlook would be negated if the stock closes below Rs 250. Long-term investors may hold with a stop-loss at Rs 250. Fresh exposures may also be considered on a close above Rs 320, with a stop-loss at Rs 300. Partial profit booking may be considered on the evidence of resistance at the Rs 355-360 range.

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