The Hindu Business Line : Reliance perched above crucial trigger

The recent rally appears to be part of a correction to the earlier fall. This upward corrective phase is likely to face resistance at the Rs 790-795 range. The stock is likely to resume the downtrend on the completion of the expected upward move. Investors may hold with a stop-loss at Rs745. Short-term traders may take long positions on intra-day weakness, with a stop-loss at Rs 755.

SBI (Rs 831): Last week's view of a drop to the Rs 785-790 range is unchanged. The immediate resistance is at the Rs 845-855 range. Short positions may be considered on the evidence of resistance at this range, with a stop-loss at Rs 862. A close below Rs 800 would confirm the short-term bearish outlook. Remain invested with a stop-loss at Rs 800. Fresh long positions may be avoided for the moment. A trailing stop-loss may be used in the event of a rally.

Tata Steel (Rs 348): The stock managed to hold above the crucial support level at Rs 328. This has not, however, negated the possibility of a drop to the Rs 250-260 range. The stock is likely to either seek slightly higher levels or move into a sideways correction zone before resumption of the downward move. Remain invested with a stop-loss at Rs 327. A close above Rs 352 would indicate that the stock could get into an upward correction that may get extended up to the Rs 370-375 range. Investors willing to take risk may consider long positions on price weakness, with a stop-loss at Rs 335.

Satyam Computer (Rs 628): The support level at Rs 564 remained intact, as the stock ruled firm during the week. It also moved past the resistance and stop-loss levels at Rs 595-600. The stock faces resistance at the Rs 640-645 range and support at Rs 595-600. Hold with a stop-loss at Rs 590. Fresh long positions may be considered on weakness, with a stop-loss at Rs 590.

Infosys (Rs 2,590): As observed last week, the close above Rs 2,440 imparted strength and the stock ended the week on a strong note at Rs 2,590. The near-term outlook has turned positive and a move to the Rs 2,675-2,680 range appears likely. There is a possibility that the stock could drop to the Rs 2,440-2,450 range before resuming the uptrend. Such price weakness may be used to take long positions with a stop-loss at Rs 2,390.

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Tata Motors (Rs 481): There is no change to the view expressed last week. The stock ruled firm on Monday and closed on a weak note on Wednesday. The immediate resistance zone is at Rs 495-505. The stock is likely to resume the downtrend after a brief sideways corrective phase.

The price movement during the week has not negated the earlier view of a drop to the immediate target area of Rs 435-440. A breach of this level could push the stock to the next support zone at Rs 355-360. Remain invested with a stop-loss at Rs 455. Use price rally to reduce exposures. Short positions may be considered on rally, with a stop-loss at Rs 501. Only a close above Rs 505 would offer some respite to the selling pressure.

ABB (Rs 1,660): After a rally on Monday, the stock ruled weak on Wednesday. The long-term outlook remains bullish. The share price could move to the Rs 1,950-2,000 range on the completion of the present corrective phase. The positive view would be valid as long as the stock holds above Rs 1,460. Use price dips to buy the stock with a stop-loss at Rs 1,460. A close below the stop-loss level would impart further bearishness. This would, however, not negate the long-term positive view; it would only delay the recovery process.

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