The Hindu Business Line : Pare exposure in ICICI Bank

AFTER a firm trend on the Diwali day, the stock market sentiment remained subdued on the remaining three days of the week. The relatively subdued trend in Reliance coupled with concerns relating to delay in PSU disinvestment affected market sentiment.

Sensex (2956.84): On three trading days, the index reversed around the 2994-point mark. Any upmove would now face resistance at this level. Above 2994, the Sensex could face resistance around the 3030-3050 band. The overall outlook for the index continues to remain weak. Only a close above 3230 would negate the negative outlook for the Sensex.

The focus this week is on ICICI Bank and Saw Pipes. The ICICI Bank scrip has seen a sharp slide in the recent weeks. Ideally, the scrip could drop to the Rs 95-100 band shortly. Existing holders could look for opportunities to reduce exposures while short positions may also be contemplated by aggressive traders with a stop loss at Rs 126.

In the case of Saw Pipes, some sort of a "double bottom" pattern has been completed recently. The short-term outlook for the stock appears positive. A move above Rs 75 could be used to take long positions in the scrip, with a target price of Rs 85.

Recommendation follow-up

The price movement in Tata Engineering, Tata Steel and Titan Industries was almost in line with last week's expectations. The share price of Tata Engineering ruled weak after having touched a high of Rs 149.75 on Tuesday.

As mentioned last week, the scrip appears to be headed towards the Rs 120-125 band. At present, a move past Rs 150 could help the scrip move to the Rs 155-157 range. Existing holders could look for opportunities to reduce exposure in the company. A drop below Rs 140 could be used to take short positions in Tata Engineering.

The share price of Tata Steel ruled weak in line with last week's expectations. The scrip is likely to slide to the Rs 100-110 band shortly.

Existing holders could, therefore, look for avenues to reduce exposures. A drop below Rs 124 would be an early indicator of bearish trend while a breach of Rs 121 mark would push the scrip to the sub-Rs 110 levels. Aggressive traders could take short positions on a break below Rs 124.

After a firm trend on Monday, the share price of Titan Industries turned weak on the remaining three days of the week.

Long positions would not have been triggered as the scrip did not move past Rs 64. This, however, has not negated the earlier view that the scrip would move to the Rs.70-75 band. Existing holders could remain invested with a stop loss at Rs 56, while fresh buying may be considered on a move past Rs 63.

(Note: The analysis and opinions expressed in these columns are based on the technical analysis of the past price behaviour. Analysis and price targets are based on the Elliott Wave Analysis. There is a risk of loss in trading)

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Do's and don'ts for investors

Old private sector banks — Bent but not broken

Learning new survival ways

Thinning spreads, bulging NPAs

Bankable bets

Now you can have forex accounts

Sundaram Gilt Fund: Sell/Avoid fresh exposure

Franklin India Bluechip Fund: Invest

Kotak Mahindra K-30: Switch

HDFC Growth: Hold/Avoid fresh exposures

Variable Investment Scheme — New index-linked plan from UTI