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B. Krishnakumar

Tata Power (Rs 404): The stock ruled weak as anticipated a couple of weeks ago. The stock has turned weak after the completion of a bearish upward sloping "wedge" pattern. The share price could drop to the Rs 370-380 range. A drop below Rs 400 would be an early indicator of the onset of the short-term weakness. Short positions may be initiated on a drop below Rs 398, with a stop-loss at Rs 410. A trailing stop-loss may be employed once the stock drops below Rs 398. The bearish outlook would be negated if the stock closes above Rs 416.

Reliance Ind (Rs 571.9): The price action in the recent days has validated our earlier bullish view. The near-term trend is bullish. The stock is headed towards the next target zone at the Rs 595-600 range. A close above Rs 605 would help the stock move to the next resistance zone at Rs 625-630. Remain invested with a stop-loss at Rs 545. Fresh long positions may be considered on price weakness with a stop-loss at Rs 545 and a target price of Rs 595. A close below Rs 545 would be an early indicator of weakness and a drop below Rs 530 would push the stock into a bearish orbit.

Hindustan Lever (Rs 149.7): The near-term outlook for the stock is bullish. A move to the Rs 156-159 range appears likely. Holders of long positions may either tighten the stop-loss or take partial profit once the stock moves to the target zone of Rs 156-159. Stop-loss for long positions may be placed at Rs 145 (on a closing basis). Investors may refrain from taking fresh positions in the stock.

HDFC (Rs 787.2): The stock has been confined to a narrow trading zone in the recent weeks. Only a breakout of this range would impart strength. The near-term outlook is bullish. The stock appears to be headed towards the immediate resistance level at the Rs 825-830 range. At least partial profit booking may be considered when the stock moves to the target zone. Fresh buying may be avoided. Shareholders may remain invested with a stop-loss at Rs 770.

Infosys (Rs 2232.8): The stock moved in line with expectations. The share price appears on course to move to the projected target zone of the Rs 2260-2265 range. Remain invested with a stop-loss at Rs 2190 and a trailing stop-loss may be used to protect unrealised gains. Investors may book partial profits when the stock moves to this target zone. Fresh buying may be deferred.

Follow-up:

Cipla (Rs 265.7): Contrary to expectations, the stock ruled firm during the week. This, however, has not negated the view that the stock would drop to the Rs 238-242 range. Hold with a stop-loss at Rs 260. Fresh buying may considered with a suitable stop-loss on the evidence of support at the Rs 238-242 range.

Mahavir Spinning (Rs 308.1): A positive trend prevailed as anticipated last week. The stock managed to breakout of the trading range that it was confined to in the recent weeks. A strong upward move on Friday, backed by a surge in trading volume, is an indication of strength. The share price appears on course to move to the target zone of Rs 325-330. Hold with a stop-loss at Rs 285. Fresh buying may also be considered on intermittent price dips, with a stop-loss at Rs 285.

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