• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

B. Krishnakumar

ONGC (Rs 689.2): The stock did not see any significant price movement last week. It was stuck in a narrow range unlike other few index stocks. The flat trend provided stability to the Nifty and Sensex. They would have been battered had a bearish trend prevailed in ONGC, too, last week. The trend appears weak and the stock faces strong resistance at about Rs 725. Only a move above Rs 730 would impart strength. Else, it is likely to remain range-bound or drop to lower levels of about Rs 670-675. A drop below Rs 670 could push the stock to the Rs 645-650 zone.

HLL (Rs 107.1): The trend in the recent weeks has been in line with expectations. The stock has moved closer to the projected target zone of Rs 102-105. The Rs 98-100 range is a strong support zone for the stock. A breach of this zone could push the stock to Rs 78-80 levels. Taking into account the weak outlook, there is no reason to take exposures in the stock. Shareholders may reduce holdings and consider re-entry at lower levels.

Infosys (Rs 1547): The stock managed to hold above the bearish trigger level of Rs 1460. As a result, it managed to rule relatively firm in comparison to other index stocks. A drop below Rs 1520 would lead to near-term weakness. The stock is likely to reverse direction after hitting this resistance zone at Rs 1570-1580. A move past Rs 1585 would have positive implications and could help the stock move to the Rs 1635-1640 range. Remain invested with stop-loss at Rs 1520.

Tata Motors (Rs 382.4): As expected, the stock ruled weak, and also dropped to the target zone of Rs 375-380 that was mentioned last week. It now trades at close to the key support point at Rs 363. A drop below Rs 362 would lead to further weakness and could result in a decline to the Rs 340-345 range. The stock is, however, likely to see a near-term bounce towards the Rs 395-400 range. Remain invested with a stop-loss at Rs 362.

Reliance Ind (Rs 463.3): As anticipated, a weak trend prevailed last week and the stock also dropped below the bearish trigger of Rs 470. It has moved closer to the target zone of Rs 455-460. The near-term trend remains negative and the stock is expected to drop to the Rs 445-450 range. Evidence of support at this range may be used to take long positions in small lots with a close stop-loss in place.

(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)

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Investment Quiz

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line