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B. Krishnakumar

Reliance Ind (Rs 557.2): The stock was confined to a narrow trading band and the price action last week was characterised by a zig-zag pattern. The share price is now perched just above the crucial support level at Rs 552. A close below this level would spell weakness. This could result in a drop to the Rs 510-515 range subsequently. Hold with a stop-loss at Rs 551. Fresh buying may be avoided. Exposures may be trimmed on price rally. A close above Rs 580 would negate the bearish outlook and provide an upward momentum to the stock.

Tata Power (Rs 341.4): After moving to a high of Rs 365.9, the stock has been ruling weak over the past few days. The share price appears to be on course to move to the earlier mentioned level of Rs 335. Long positions may be avoided. Holders of short positions may have a stop-loss at Rs 353. A close below Rs 335 may impart further weakness and may push the stock to the Rs 318-320 band. The possibility of a drop to lower levels would be negated if the stock closes above Rs 358.

Hindustan Lever (Rs 131.8): The share price was confined to a congestion zone last week. It managed to hold above the crucial support level at Rs 127. A close below Rs 127 would impart weakness and could push the stock to the Rs 105-110 range. The stock faces resistance at the Rs 137-138 range. Holders of long positions may have a stop-loss at Rs 128. At least a portion of the holding may be sold on the evidence of resistance at around the Rs 137-138 range.

HDFC (Rs 711.6): Similar to most of the other frontline stocks, the price movement in this stock too, was, devoid of any major trend. The stock was oscillating in a narrow trading zone and closed on a weak note on Friday. The immediate support for the stock is placed at Rs 690. A drop below this level would take the stock to the Rs 670-675 range. Remain invested with a stop-loss at Rs 690. Fresh exposures may be deferred. A strong upward move would materialise when the stock closes above Rs 745.

Infosys (Rs 2,126.6): The weakness in the technology sector stocks including Infosys played a major role in pulling down the indices. The short-term trend has turned weak, as the stock closed below the stop-loss level of Rs 2130. The stock is likely to slide to the Rs 2,075-2,080 range this week. With the earnings announcement round the corner, it would be advisable to be cautious while taking positions in the stock.

Follow-up

Chennai Petroleum (Rs 235): The stock ruled firm as observed last week. After touching a high of Rs 245, the index closed on a relatively weak note on Friday. The positive view would be in force as long as the index stays above Rs 205. A close below Rs 205 would negate the positive outlook and would push the stock to the Rs 185-190 range.

Investors who have taken exposures last week may have the stop-loss at Rs 218. As observed last week, the stock appears to be headed towards the Rs 260-level. Partial profit booking may be considered on a move towards the target zone.

KEC International (Rs 195.6): After touching a high of Rs 210, the stock turned weak on Tuesday. The outlook for the stock remains bullish. The stock appears on course to move to the target zone of the Rs 235-240 range that was mentioned last week.

Shareholders may remain invested with a stop-loss at Rs 173. Fresh exposures may also be considered with a stop-loss at Rs 173. A close below Rs 173 would negate the positive outlook and would push the stock to the Rs 158-160 range. Evidence of support at this range may be used to take fresh exposures.

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