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B. Krishnakumar

ITC (Rs 797): The stock moved in sync with expectations. It ruled weak and dropped to the projected target zone of the Rs 785-790 range that was mentioned last week. After dropping to Rs 770 on Thursday, it recovered sharply to close at Rs 797 on Friday. The near-term trend has now turned positive and a move towards the Rs 850-860 range appears likely. Existing holders could remain invested with a stop loss at Rs 765.

HLL (Rs 182.5): As anticipated last week, the stock ruled weak and dropped to the target range of Rs 175-178. After recording a low of Rs 177 on Friday, the stock recovered ground to close at Rs 182.5 on Friday. Though the near-term outlook appears positive, a drop to the Rs 170-173 range appears likely. The overall positive trend is likely to reassert itself after the completion of the expected drop to the Rs 170-173 range. Existing holders could remain invested with a stop loss at Rs 175. Evidence of support around the Rs 170-172 range could be used to build fresh exposures.

Infosys (Rs 4,358.7): The stock moved in line with last week's expectations. It dropped to the projected target range of Rs 4,000-4,020 and recovered ground thereafter. The near-term outlook appears positive with a move towards Rs 4,600-4,650 being the preferred view. A move past Rs 4,400 would have positive implications while a drop below Rs 4,000 would impart bearish trend. A close above Rs 4,600 could be used to take long positions with a close stop loss.

Satyam Computer (Rs 241.5): The stock was stuck between the positive trigger price of Rs 270 and the bearish trigger of Rs 218. The short-term trend appears positive. Existing holders could remain invested with a stop loss at Rs 225. Short-term traders could take long positions on a move past Rs 250.

Reliance Ind (Rs 405.2): After a weak trend, the stock staged a sharp recovery on Friday. While the short-term trend appears positive, the drop from the high of Rs 442 does not appear complete as yet. After moving towards the Rs 415-420 range, the stock is likely to drop to the Rs 375-380 range. Existing holders could remain invested with a stop loss at Rs 390.

Follow-up

Kotak Mahindra Bank (Rs 233.9): After moving to the target zone of Rs 265-270, the stock turned weak. On Monday, the stock recorded a high of Rs 263 and the trend turned weak thereafter. The overall outlook continues to remain positive. Existing holders could remain invested with a stop loss at Rs 215.

United Phosphorous (Rs 385): After touching low of Rs 360, the stock staged a recovery thereafter. The overall outlook for the stock is positive. However, the stock could drop to the last week's projected target zone of Rs 350-355. Existing holders could remain invested with a stop loss at Rs 350. Evidence of support at the Rs 350-353 range could be used to take long positions.

Bongaigaon Refineries (Rs 66.6): The failure to move past Rs 76 and the subsequent breach of Rs 66.5 has blunted the earlier positive outlook for the stock. The stock is likely to oscillate in a narrow range. A drop to the Rs 57-58 range appears to be on the cards. Existing holders could reduce exposures and contemplate re-entry on a move past Rs 76.

Focus of the week

Mahindra & Mahindra (Rs 213.5): The stock could drop to the Rs 185-190 range in the near term. Existing holders could remain invested with a stop loss at Rs 196. A trailing stop loss could be used if the price moves up. Only a close above Rs 230 would impart positive trend.

BEML (Rs 142.7): The outlook appears positive and a move towards the Rs 175-180 range seems likely. Existing holders could remain invested with a stop loss at Rs 120. Price dips could be used to take fresh exposures with a stop loss at Rs 115. Only a close below Rs 113 would negate the positive trend.

(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)

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