The Hindu Business Line : Bullish undertone in SBI, Reliance

As is the case normally, if the stock has the strength to move past a resistance zone, the trend would continue for a while in the direction of the breakout.

The share price is likely to move to the target zone of the Rs 910-915 range. Remain invested with a stop-loss at Rs 835. Fresh exposures may be considered on weakness, with a stop-loss at Rs 835.

Reliance Ind (Rs 795): The expected short-term uptrend materialised during the week. The share price, however, closed above the resistance-cum-stop loss range at the Rs 790-795 on Friday. This is a positive development and has imparted short-term bullish trend. The stock could move to the target range of Rs 840-845 range in the near term. Remain invested with a stop-loss at Rs 755. Fresh exposures may also be considered on weakness, with a stop-loss at Rs 755.

Tata Steel (Rs 371): The stock moved in expected lines. The short-term uptrend materialised during the week and the share price moved to the target zone of Rs 370-375. The short-term outlook is positive as the recent upward move does not appear complete. A move to the Rs 395-400 range appears likely. Hold with a stop-loss at Rs 359. Fresh exposures may also be considered with a stop-loss at Rs 359. A trailing stop-loss may be used in the event of a move past Rs 400.

The short-term positive outlook would be negated on a close below Rs 359, as this would push the stock to the Rs 325-330 range.

Satyam Computer (Rs 651): The stock ruled firm and moved to the resistance zone at the Rs 640-645 range. The stock ruled weak for a couple of days after hitting this resistance zone and moved past this zone on Friday. This has imparted short-term strength and a move to the Rs 695-700 appears likely. Hold with a stop-loss at Rs 625. Fresh long positions may be considered on weakness, with a stop-loss at Rs 625.

Infosys (Rs 2,681): The price movement was in sync with expectations. The stock moved to the target zone of Rs 2,675-2,680 on Friday. The near-term trend remains bullish and a move to the Rs 2,775-2,800 range appears likely. Investors may hold with a stop-loss at Rs 2,600. Fresh long positions may also be considered on weakness, with a stop-loss at Rs 2,600.

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HDFC (Rs 1,050): The stock moved in sync with expectations. It ruled firm and touched a high of Rs 1,080 during the week. The outlook remains positive and the share price appears on course to move to the target zone of Rs 1,150-1,200. This view would be valid as long as the stop-loss level at Rs 860 is not broken. From a short-term trading perspective, long positions may be considered with a stop-loss at Rs 1,000. Price weakness may be used to enhance exposures with the same stop-loss. A breach of Rs 1,000 could result in a drop to support range at Rs 970-975, which again would be a good opportunity to take long positions, with a stop-loss at Rs 920.

IPCL (Rs 228): The price action was confined to a narrow trading zone last week. The stock, however, recorded a modest upward move on Friday. The recent sideways price action has not negated the earlier view of a rally to Rs 245-250. A close above the immediate resistance level at Rs 231 would trigger an uptrend.

Long positions may be considered on a close above Rs 231, with a stop-loss at Rs 221. A close below Rs 221 could push the stock to the Rs 210-215 band. Long- term investors may remain invested with a stop-loss at Rs 204. Only a close below Rs 204 would blunt the positive outlook.

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