The Hindu Business Line : Reliance may test support level

Reliance Ind (Rs 703.7): The stock ruled weak and dropped below the first support level at the Rs 708-710 range. The recent price patterns suggest that the share price could test the next support level at the Rs 680-685 range. The long-term trend remains bullish and the view of a rally to the Rs 775-780 range remains valid. The long-term positive outlook would be negated if the stock closes below the bearish trigger 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.

SBI (Rs 812.4): The price movement was in line with expectations. The stock ruled weak and dropped to the target zone of the Rs 765-770 range that was mentioned last week. After hitting a low of Rs 766.25 on Tuesday, the share price recovered ground in the next couple of days. The near-term outlook does not appear positive. A test of the recent swing low of Rs 766 appears likely. Though the short-term outlook appears bearish, the stock is likely to move to the target zone of the Rs 840-845 range on the completion of the expected correction. Remain invested with a stop-loss at Rs 740

Tata Steel (Rs 402.3): A bullish trend prevailed as anticipated last week. The share price also moved to the target zone of the Rs 405-410 range. The outlook for the stock remains bullish and a move to the Rs 425-430 range appears likely. The positive view would be valid as long as the price holds above Rs 370. Remain invested with a stop-loss at Rs 369. Fresh exposures may be considered on price weakness, with a stop-loss at Rs 369.

Satyam Computer (Rs 526): The share price movement was in line with last week's observation. It ruled weak and also dropped to the target zone of Rs 490-495. The price pattern does not suggest the completion of the earlier corrective phase. The stock is likely to rule weak and could drop to the Rs 495-500 range. There is strong overhead resistance at the Rs 535-540 band. Investors may reduce holdings and consider fresh exposures on price weakness.

Infosys (Rs 2259.4): The stock moved within the confines of the resistance level at the Rs 2375-2380 range and the negative trigger level of Rs 2200. The near-term trend is bearish and a drop to the Rs 2125-2130 range appears likely. Investors may reduce exposures. As the long-term trend is bullish, fresh exposures may be considered on price weakness. The stock is likely to move to the long-term target zone of the Rs 2500-2600 range on the completion of the expected short-term correction.

... ... ... ... ..Follow-up... ... ... ... ..

Nicholas Piramal (Rs 274.6): The share price movement was devoid of any significant trend in either direction. This has, however, not negated the bullish outlook for the stock. The stock appears on course to move to the target zone of the Rs 310-315 range mentioned last week. The positive view would be valid till such time the stock holds above Rs 244. A close below this level would warrant dilution of holdings. Fresh exposures may be considered on a close above Rs 281, with a stop-loss at Rs 255. Partial profit-booking may be considered on a move towards the target zone.

Jaiprakash Associates (Rs 262.3): After ruling weak in the first four trading days, the trend turned positive on Friday. The pick-up in trading volume and a healthy recovery in price on Friday could signal the start of the next leg of the upward move. The earlier view of a rally to the target zone of Rs 320-330 is unchanged. The positive outlook would be in force as long as the stock trades above Rs 245. Investors may hold with a stop-loss at Rs 244. Fresh exposures might also be considered on price weakness, with a stop-loss at Rs 244. A close below Rs 244 would warrant dilution of holdings and a close below Rs 230 would negate the bullish outlook.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page