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B. Krishnakumar

ONGC (Rs 718): Though the stock moved past the positive trigger price of Rs 732, it turned weak immediately. The share price was unable to hold ground above this level, which is not a positive sign. An upward sloping "wedge" pattern appears to be taking shape on the daily price chart. A downward breakout from this pattern is likely to materialise shortly. This is likely to impart a sharp downward move. A drop below Rs 700 would be an early indicator of the onset of the downward trend.

HLL (Rs 116.2): After a sharp drop on Wednesday, the stock recovered ground on Thursday. The near-term trend appears weak and a drop to the Rs 102-105 range appears likely. As observed in earlier weeks, the stock is in the last leg of the correction and a significant upward move is likely to materialise on the completion of the downward move. Shareholders may remain invested with a stop-loss at Rs 110 and may clip exposures on intra-day price rally.

Infosys (Rs 1526.3): The price movement was in line with expectations. The stock reversed direction after hitting the target zone at the Rs 1585-1590 range. The stock is likely to test this resistance level again and turn bearish thereafter. A move above Rs 1540 would validate this view. Remain invested with a stop-loss at Rs 1489 and reduce exposures on weakness around Rs 1600. There is no reason to commit funds afresh in this stock.

Tata Motors (Rs 425.2): The stock ruled firm as anticipated and turned weak on Friday. The near-term outlook is bearish and a drop to Rs 410 appears likely. Only a close above Rs 440 would impart positive momentum. A breach of the Rs 410 mark could pave the way for a decline to the Rs 385-390 range. Remain invested with a stop-loss at Rs 410 and look for opportunities to pare exposures. Fresh buying may be avoided.

Reliance Ind (Rs 493.9): The stock moved in line with expectations. It reached the projected target range of Rs 500-505 and reversed trend thereafter. As observed last week, the Rs 505-507 range is a key resistance zone. A break above this level would impart buoyancy. In the near term, the stock is likely to rule weak. A drop to the Rs 465-470 range appears likely. A drop below Rs 482 would confirm the short-term weak outlook and could push the stock down to the Rs 465-470 zone. Remain invested with a stop-loss at Rs 482 and use any intermittent strength in the stock to reduce exposures.

(The analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. Opinion and price targets are based on the Elliott Wave Analysis. The stop-loss level provided with the recommendation is important. The original view would stand negated if the stop loss level is breached. There is a risk of loss in trading)

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