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B. Krishnakumar

ITC (Rs 809.95): The stock was confined to a relatively narrow trading range last week. A break out of this range would be critical in imparting a decisive trend in the stock. The overall outlook continues to remain positive and a move towards Rs 850-860 appears likely. A close above Rs 840 could be used to take fresh long positions with a close stop loss in place. Existing holders could remain invested with a stop loss at Rs 770.

HLL (Rs 190.9): As anticipated, the stock ruled firm and managed to seek higher levels. The near-term outlook continues to remain positive and a move towards the Rs 208-210 range appears likely. A close above Rs 200 would push the stock into a bull orbit and could lead to a steady upmove. Existing holders could remain invested with a stop loss at Rs 184. A close above Rs 200 could be used to take fresh long positions with a stop loss at Rs 184.

Infosys (Rs 4,559.9): The stock managed to move to the earlier projected Rs 4,600-4,650 range. After touching a high of Rs 4,648, the stock closed weak at Rs 4,559.9 on Friday. The stock is ruling close to the crucial resistance level of Rs the 4,880-4,900 range. Only a break above this level would impart some strength. There is a possibility of a drop to the Rs 4,050-4,100 range in the near term. A drop below Rs 4,200 would signal a drop to the Rs 4,050 level.

Satyam Computer (Rs 257.9): After moving closer to the target zone of the Rs 265-270 range, the stock turned weak on Friday. The short-term trend does not appear positive. A drop to the Rs 225-230 range is not ruled out. Existing holders could remain invested with a stop loss at Rs 245. Only a close above Rs 270 would impart positive trend.

Reliance Ind (Rs 448.6): The stock ruled firm as expected. The near-term trend appears positive and a move towards the Rs 475-480 range appears likely. Only a drop below Rs 430 would negate the positive outlook. Existing holders could remain invested with a stop loss at Rs 430. A trailing stop may be employed on price up moves.

Follow-up

Bajaj Auto (Rs 841.3): The stock ruled firm and appears to be headed towards Rs 1,000. Price dips could be used to take long positions while existing holders could remain invested with a stop loss at Rs 750. A close below Rs 740 would warrant dilution of holdings.

Cipla (Rs 1,046.7): The stock ruled strong and last week's view of a rally to the Rs 1250-1300 range remains valid. A close above Rs 1,080 could be used to take fresh long positions. Existing holders may remain invested with a stop at Rs 925. Only a close below Rs 880 would negate the positive outlook.

Jindal Iron and Steel (Rs 164.8): The share price appears on course to move towards the price target of Rs 210-220 mentioned last week. A close above Rs 176 would be an early indication of the move towards this range. Existing holders could remain invested with a stop loss at Rs 135.

Tata Teleservices (Rs 13.05): Though the share price ruled weak in the past few trading sessions, it has not negated the earlier bullish outlook. As mentioned last week, a move to the Rs 20-22 range appears likely. Only a drop below Rs 11 would invalidate this view. Aggressive traders may take long positions with a stop loss at Rs 11. A drop below Rs 11 would warrant dilution of holdings.

Focus of the week

IVRCL Infrastructure (Rs 81.9): After moving to the earlier mentioned (edition dated July 6) target zone of Rs 92-95, the stock turned weak since August. The downward correction appears complete and the stock could be in the early stages of a bull run. A move to the Rs 120-125 range appears likely. Existing holders could remain invested with a stop loss at Rs 60 while fresh buying may be considered with a stop loss at Rs 74.

Sundaram Clayton (Rs 407.7): The overall outlook appears positive and a move to the Rs 500-520 range appears likely. Existing holders could remain invested with a stop loss at Rs 360. Fresh buying may also be considered with a stop loss at Rs 360.

(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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