The Hindu Business Line : Weak near-term outlook for Infosys

Wipro (Rs 1509): The stock ruled firm on the first two days of the week and turned weak thereafter. The near-term trend appears weak. A drop to the Rs 1420-1450 range appears likely. A drop below Rs 1420 would lead to further weakness and could pave the way for a drop to the 1320-1350 range. Only a close above Rs 1650 would reinstate a positive trend. Existing holders may remain invested with a stop loss at Rs 1430.

Infosys (Rs 4912): The stock did not quite move in line with expectations. Except for a firm trend on Monday, it ruled weak on the remaining days. The near-term outlook appears weak and a drop to the Rs 4550-4600 range appears likely. Only a close above Rs 5300 would reinstate bullishness in the stock. Existing holders could remain invested with a stop loss at Rs 4700. A close above Rs 5300 could be used to take long positions with a close stop loss in place.

Satyam Computer (Rs 330.2): The price action in the stock was in line with that of Infosys. After a sharp upmove on Monday, a bearish trend prevailed in the remaining days of the week. The formation of a long Black Candlestick is a bearish development on the daily charts. A drop to Rs 300-305 appears likely. Only a move past Rs 360 would negate the weak outlook and would impart a degree of strength. Remain invested with a stop loss at Rs 320.

Reliance Industries (Rs 492.9): The stock moved in line with expectations. It ruled firm initially and moved to the earlier projected target zone of Rs 495-500. The stock could rule weak in the next few days. A drop to the Rs 465-470 range is not ruled out. At the moment, only a close above Rs 515 would negate the weak outlook. A close below Rs 445 would have negative implications and could push the stock to the Rs 400-410 range.

HLL (Rs 187): The stock displayed strong resilience even amidst the carnage that was witnessed on Friday. The damage to the index was in fact mitigated by the firm trend in this stock. The rally on Friday has pushed the stock closer to the upside breakout trigger of Rs 190. A close above this level could impart strength and a move to 205-210 may take shape thereafter. Only a close below Rs 173 would negate the short-term positive outlook. Remain invested with a stop loss at Rs 173.

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