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B. Krishnakumar

Tata Power (Rs 412.6): A bearish upward sloping "wedge" pattern appears to be taking shape on the daily price charts.

A drop below Rs 405 would confirm the completion of the pattern and would impart short-term weakness. A breach of Rs 405 would push the stock down to Rs 385-390 range.

Hold with a stop-loss at Rs 406 and use any price rally to reduce exposures. Fresh buying may be considered on evidence of support at the Rs 380-385 range. A close above Rs 426 would negate the negative outlook and would impart strength. Long positions may be considered with a suitable stop-loss on a close above Rs 426.

Reliance Ind (Rs 534.45): Though a bearish trend prevailed last week, it has not negated the positive outlook for the stock. The bullish outlook would be under threat if the stock drops below Rs 524. Shareholders may remain invested with a stop-loss at Rs 524. Fresh exposures with a close stop-loss may be considered on a move past Rs 544. For the moment, it would advisable to refrain from taking any trading position.

Hindustan Lever (Rs 144.8): The stock continued the weak trend that persisted in the earlier week. The failure to move past the positive trigger level of Rs 163 was the first sign of weakness. The breach of the stop-loss level of Rs 150 confirmed the continuation of the bearish trend. The recent downward move does not appear complete. A close below Rs 142 would result in a drop to Rs 132-135 range. Hold with a stop-loss at Rs 141.5. Fresh exposures with a stop- loss at Rs 142 may be considered if the stock moves past Rs 147 within the next couple of days.

HDFC (Rs 784.4): There is no change in the view expressed in the earlier weeks. Existing holders may remain invested with a stop-loss at Rs 760. Long positions may be considered on a move past Rs 794, with a close stop-loss in place. A drop below Rs 760 could push the stock to lower levels of Rs 700-710.

Infosys (Rs 2165.6): The stock moved in line with last week's expectations. The move past Rs 2125 imparted strength and pushed the stock to the target zone of Rs 2,185-2,200. After touching a high of Rs 2,203, the stock turned weak on Wednesday. The near-term trend remains bullish and the stock is likely to seek higher levels of Rs 2,260-2,270. Hold with a stop-loss at Rs 2,100. Fresh buying may be considered on a move past Rs 2,185, with a stop-loss at Rs 2,150

Follow-up

Aztec Software (Rs 91.8): Last week's view of a rally to the Rs 125-130 range is valid. After a firm trend on Monday, the stock turned weak in the remaining days of the week. As anticipated, the stock appears to be in a corrective phase, which is likely to be completed shortly.

The Wave 3 (in Elliott Wave terminology) is likely to commence on the completion of the ongoing correction. Fresh buying may also be considered on a move past Rs 96.5, with a stop- loss at Rs 90. Shareholders may remain invested with a stop-loss at Rs 71.

SAIL (Rs 63.5): After edging past the positive trigger level of Rs 67, the stock closed below it on Monday. The stock has ruled weak since then. This, however, has not negated last week's view of a rally to Rs 78-80 range.

The bullish view would be in force as long as the stock rules above the stop-loss level of Rs 52. Existing holders may have a stop loss at Rs 52. Fresh exposures may be contemplated on a move above Rs 65.5, with a stop-loss at Rs 60. As observed last week, investors willing to wait for a longer timeframe may find opportunities to exit at about the Rs 100 level.

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