Financial Daily from THE HINDU group of publications
Sunday, Mar 27, 2005
Financial Daily from THE HINDU group of publications Sunday, Mar 27, 2005 |
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Investment World
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Technical Analysis Markets - Technical Analysis A feeble recovery in Reliance B. Krishnakumar
Reliance Ind (Rs 560.1): After a weak trend in the first two days of the week, the stock recovered ground in the last couple of trading sessions. The recent recovery appears to be just a correction to the earlier fall. The stock is expected to rule weak and a drop to Rs 495-505 range appears likely. A close below Rs 539 would confirm the negative outlook and also enhance the chances of a drop to Rs 495-505 range. Hold with a stop-loss at Rs 539 and use a trailing stop-loss in the event of an upward move. Tata Power (Rs 340.9): The stock ruled weak and dropped below the stop-loss level of Rs 368. This has negated the earlier short-term positive outlook. The stock is ruling close to the support level at Rs 335-338 range. A drop below Rs 335 would push the stock to Rs 315-319 range. The recent price pattern indicates that the stock could drop to the Rs 315-319 range. Though there could be a short-term bounce, there is no reason to buy the stock now. Remain invested with a stop-loss at Rs 335 and use price rise to reduce exposures. Hindustan Lever (Rs 134.6): After initial weakness, the stock staged a recovery in the last couple of days. The earlier bearish view for the stock, however, remains unchanged. As observed last week, the stock appears to be headed towards the target zone of Rs 105-110 range. Remain invested with a stop-loss at Rs 128 and use price rally to reduce exposures. The stock faces resistance at Rs 137-138 range. Short positions may be considered on evidence of resistance at around Rs 137-138 range. Fresh buying may be avoided. HDFC (Rs 691): The stock ruled weak as anticipated last week. It dropped way below the projected target zone of Rs 725-735 range and closed at Rs 691 on Friday. The stock is ruling close to the immediate support zone at Rs 665-675 range. The share price is likely to drop to the support zone and stage a recovery subsequently. Remain invested with a stop-loss at Rs 680. Fresh exposures may be avoided now. Infosys (Rs 2,159): The share price was confined to a narrow trading zone last week. The immediate support lies at the Rs 2,130-2,135 range. A drop below Rs 2,130 would push the stock to Rs 2,075-2,085 range. Hold with a stop-loss at Rs 2,130. Fresh exposures may be avoided. A close below Rs 2,130 would warrant dilution of holdings.
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