The Hindu Business Line : HLL in final phase of decline

ONGC (Rs 712): The sideways movement witnessed over the past few weeks continued into the past week as well. The stock failed to make headway in either direction.

As observed last week, the stock faces resistance at Rs 725-Rs 730 range. Only a close above Rs 730 would impart bullishness. Otherwise, the stock is likely to remain range-bound or drop to lower levels of Rs 670-Rs 675. A drop below Rs 690 would be an indicator of the onset of a bearish trend.

HLL (Rs 111): As mentioned last week, the Rs 98-Rs 100 is a strong support zone. The stock managed to hold above this level last week. It also ruled firm and closed on a positive note at the end of the week's trading.

The recent price action indicates the possibility of a one more phase of downward move. The expected decline would mark the completion of the bearish phase for the stock. After moving closer to the Rs 100-Rs 102 zone, the stock is likely to record a significant recovery. A drop below Rs 98 would negate this view and result in the continuation of the decline.

Infosys (Rs 1,564): The stock moved in line with expectations. It turned weak after hitting the resistance zone of Rs 1,570-Rs 1,580. The near-term trend appears positive and a move to Rs 1,610-Rs 1,620 range appears likely.

A close above Rs 1,582 would confirm the positive view. Remain invested with a stop loss at Rs 1,520. A drop below Rs 1,520 would warrant dilution of long positions. Partial profit booking may be considered if the stock faces resistance at around Rs 1,610-Rs 1,620 range

Tata Motors (Rs 377): There appears to limited downside risk in the stock. The stock could see one more bout of decline. At least a relief rally is likely to take place after this anticipated downward move.

The immediate support for the stock is at Rs 361-Rs 362. A decline below this range could lead to further weakness. At the moment, a drop to Rs 361-Rs 362 range and a subsequent recovery is the preferred view.

Reliance Ind (Rs 458): As anticipated, the stock bounced back after hitting the downside target of Rs 445-Rs 450 range. The downward move does not appear complete. The stock is likely to seek lower levels of Rs 435-Rs 440 range in the near term. Fresh buying may be avoided while existing holders may reduce exposures and contemplate re-entry on support at around Rs 435-Rs 440 range.

(Note: 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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