The Hindu Business Line : Bullish trend in ITC, Ranbaxy

ITC (Rs 1309.8): The earlier view that the stock has commenced the next round of an upward move is valid. After moving to a high of Rs 1338, the stock turned weak on Friday. The share price appears on course to hit the target zone of Rs 1450-1500. A move past Rs 1340 would impart strength. Long positions may be considered on the breach of the Rs 1340 mark. Stop-loss for fresh long positions may be placed at Rs 1280. Shareholders may remain invested with a stop-loss at Rs 1260.

Ranbaxy Labs (Rs 1251.4): The long-term outlook for the stock is bullish. The short-term outlook is also likely to turn bullish. This may be the right time to consider exposures in the stock. The short-term corrective phase appears complete and the share price may get into the next leg of an upward move shortly. The immediate target is placed at the Rs 1475-1500 range. The positive view would be in force till such time the stock trades above Rs 1170. Hold with a stop-loss at Rs 1,170.

Reliance Ind (Rs 528): The stock continues to rule below the positive trigger level of Rs 548. Though the bearish outlook is the preferred view, a move above Rs 548 would lead us to turn bullish on this stock. A drop below Rs 505 would reinstate bearishness and strengthen the case for a drop to the Rs 445-450 range. A significant move would emerge only if the stock makes a decisive move past either of these trigger levels. Till such time, it would be advisable to stay clear of the stock from a trading perspective.

Hindustan Lever (Rs 143.5): The share price is yet to complete the corrective phase that it has been into over the past couple of weeks. The next phase of the upward move towards the price target of the Rs 165-170 range would start on the completion of the corrective phase. As observed last week, there is negligible downside risk. Long positions may be considered on price dips with a stop-loss at Rs 135. The positive view would be valid until the stock drops below Rs 135. A drop below Rs 135 would warrant dilution of holdings.

Infosys (Rs 2089): The stock was confined to trading range last week. The zigzag price action indicates the absence of any meaningful trend. The near-term outlook would depend on the price movement in the next few days. A move past Rs 2120 would impart strength; a drop below Rs 2050 would have negative implications. Shareholders may remain invested with a stop-loss at Rs 2,30.

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