The Hindu Business Line : Positive outlook for Reliance

ITC (Rs 860): There was no significant change in the price action in the stock. Similar to the previous week, the stock remained confined to a narrow range. After a sharp drop on Tuesday, the stock remained range bound and staged a modest recovery on Friday. Going by the recent price pattern, it appears as though a contracting triangle pattern is taking shape. A break out of this pattern would provide some momentum in the direction of the breakout. A move above Rs 915 would impart bullish trend. On the contrary, a drop below Rs 840 would result in weakness.

HLL (Rs 182.8): The share price of the company was confined to a narrow trading range last week.

Though the long-term outlook is positive, only a break out of this range would impart the necessary momentum to push the stock into a bull orbit. A close above Rs 190 would impart bullishness.

A drop below Rs 173 would lead to a bearish phase, and a drop to the Rs 150-155 range is not ruled out thereafter. Remain invested with a stop loss at Rs 173.

Infosys (Rs 4,624): The stock could not sustain the upward momentum after moving past the resistance level of Rs 4,950 in the previous week. Contrary to expectations, the stock ruled weak and dropped below the support level of Rs 4,740 that was mentioned last week.

Last week's view of a move to the Rs 5,400-5,450 range is still valid. Though there appears to be little downside risk from current levels, a close below Rs 4,350 would negate the positive outlook. A close above Rs 5,200 could be used to take long positions with a close stop loss in place.

Satyam Computers (Rs 315.9): In contrast to last week's expectations, the stock ruled weak and dropped below the support level of Rs 318.

It declined to the target zone of Rs 305-310 that was mentioned last week and staged a reversal on Saturday. The near-term trend appears positive and a close above Rs 330 would confirm the positive view. However, a drop below Rs 305 would lead to the resumption of the decline. Remain invested with a stop loss at Rs 305.

Reliance Ind (Rs 470): The price movement in the stock was in line with last week's expectations. It dropped to the last week's projected target zone of Rs 450-460 on Saturday and reversed thereafter. The recent downtrend appears complete and the stock could resume the uptrend. A move to the Rs 495-500 range appears likely. Remain invested with a stop loss at Rs 450.

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