The Hindu Business Line : Satyam embarks on an uptrend

Satyam Computer (Rs 738): The stock ruled weak and also dropped to our target zone at Rs 685-690. It reversed direction at this support zone and staged a recovery since Tuesday.

The stock is on a major uptrend and has substantial distance to be covered on the upside. The immediate target is Rs 765-770. The positive trend would be in force as long as the stop-loss level at Rs 660 is not breached.

Infosys (Rs 2,997): The stock has moved closer to the trend line that was referred to last week. A close above Rs 3,050 would confirm the positive outlook and would strengthen the case for a rally to Rs 3,190-3,200. Hold with a stop-loss at Rs 2,850. Fresh exposures may also be considered with the same stop-loss.

SBI (Rs 908): There cannot be a better depiction of a five-wave impulsive Elliott wave pattern in real time charts. The stock commenced a fresh leg of an upward move at the low of Rs 415 in August 2004. Wave 1 of this sequence ended at Rs 751 (March 2005), Wave 2 at Rs 576 (May 2005), Wave 3 at recent high of Rs 961 and Wave 4 of this sequence also appears complete at the low of Rs 805 recorded in end October.

The stock is in the fifth and final leg of the five-segment wave sequence. The target for this fifth wave is Rs 1,050-1,100. On achieving this target, the stock is likely to get into a major corrective phase, which could result in a drop to Rs 760-800.

At this moment, the stock is a good investment portfolio candidate. Accumulate the stock at prevailing levels and on declines, with a stop-loss at Rs 860.

Reliance Ind (Rs 890): The stock ruled weak as anticipated last week. It touched a low of Rs 827, which was not too far off from the target zone of Rs 815-820 that was mentioned last week. The short-term outlook remains bullish and a move to Rs 935-940 appears likely. A close above Rs 910 would be a positive sign and would validate the possibility of a rally to Rs 935-940. The bullish outlook would warrant a reassessment only on a close below Rs 810.

Tata Steel (Rs 381): The stock managed to hold above the crucial support level at Rs 350. The sharp recovery on Friday has confirmed the earlier view of a rally to Rs 400-405. Fresh exposures may be considered at prevailing levels with a stop-loss at Rs 360.

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SRF (Rs 282): The stock ruled weak in the early part of the week and recovered ground on Friday. The price movement during the week has not negated the positive view expressed last week. The near-term remains bullish and the stock appears on course to hit the target zone at Rs 320-325.

The positive view would be valid as long as the stock holds above Rs 260. Invest with a stop-loss at Rs 260. Fresh exposures may also be considered with the same stop-loss. A close below Rs 260 would warrant dilution of holdings and a drop below Rs 250 would require liquidation of long positions.

Hindustan Construction (Rs 124): The price movement during the week was devoid of any trend. The stock oscillated within the boundaries of a narrow trading range. The outlook for the stock however remains bullish. It is likely to move to Rs 145-150 shortly. This view would be valid if the share price does not breach Rs 110.

Shareholders may remain invested with a stop-loss at Rs 110. Fresh exposures may also be considered at prevailing levels and on weakness, with the stop-loss at Rs 110. A close below Rs 110 would negate the short-term positive outlook and would warrant dilution of holdings.

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