The Hindu Business Line : Positive outlook for ITC, Infy

NIFTY (938.3): As anticipated, the index ruled firm and also managed to move past the first resistance level at 934. The near-term outlook for the Nifty continues to remain positive. A move towards the 955-960 range appears to be on the cards.

However, the anticipated short-term rally does not negate the earlier bearish outlook over a longer time frame. The earlier view of a drop to the 850-860 range continues to remain valid. After some consolidation, the Nifty is likely to resume its downward journey. Taking long positions in Nifty call options would be recommended course of action for the week.

ITC (Rs 680.5): As anticipated, the share price of the company recovered ground during the week. After touching a high of Rs 689 on Wednesday, the scrip has turned slightly weak. The near-term outlook continues to remain positive with a move to the Rs 725-750 range being a distinct possibility. Long positions may be considered with a stop loss at Rs 665. A move past Rs 725 could be used to book profit in the ITC.

Hindustan Lever (Rs 138.1): After a steady uptrend on the first few days of the week, the scrip turned weak on Friday. The overall outlook continues to remain weak and the stock appears to be bracing itself for the anticipated drop to the Rs 115-120 level. As of now, only a move above Rs 150 would impart positive trend. Existing holders could reduce exposures while short positions may be contemplated with a stop loss at Rs 146.

Infosys Technologies (Rs 2,914.2): The scrip continued to oscillate in a narrow band. It managed to stage a break-out on the back of heavy trading volumes on Friday. The scrip could seek higher levels in the near term with a move towards Rs 3,200 being a distinct possibility. Existing holders could remain invested with a stop loss at Rs 2,700. A move past Rs 3,000 could be used to take fresh exposures while a move above Rs 3,200 could be used to progressively reduce exposures.

Satyam Computers (Rs 160.2): As anticipated, the scrip was confined to a narrow trading band. While the overall outlook remains weak, the stock could seek higher levels in the near term. Existing holders could use price upmoves to trim exposures. Fresh buying may be avoided for the time being. A drop below Rs 150 could be used to take short positions.

(Note: The analysis and opinion 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)

Article E-Mail :: Comment :: Syndication

Stories in this Section
BSNL's new tariff plans: Getting to the pulse of the consumer

Pricing of long distance calls

MF asset information: AMFI must make them comparable

Peer comparison beats benchmarks

SEBI must borrow the SEC stick

Steel revival package: Recasting to strengthen

Alliance MIP and Templeton MIP-Growth: No match for income schemes

Income fund expenses: Investors stuck with high costs

Tata Life Sciences and Technology: Pare exposures

Investing in fund of funds

Birla Equity Plan: Pare exposures