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B. Krishnakumar

Tata Power (Rs 362.35): The stock moved closer to the target zone of Rs 318-320. After touching a low of Rs 325, the trend turned positive on Monday. The recent price pattern suggests that the stock could seek higher levels in the near term. A move to the immediate resistance zone at the Rs 371-372 band appears likely. Remain invested with a stop-loss at Rs 345. A close above Rs 373 would be a positive sign and could push the stock to the Rs 388-390 zone. A close below Rs 330 would almost negate the positive outlook.

Reliance Ind (Rs 546.6): The share price reversed direction right at the support zone of Rs 510-514 that was mentioned last week. The near term trend appears positive. The stock could move to Rs 562-565 range. Hold with a stop-loss at Rs 525. Partial profit booking may be considered on a move towards the Rs 562-565 range. A close below Rs 520 would be a major negative trigger and could push the stock down to Rs 490-495 range.

Hindustan Lever (Rs 132.2): The stock is still confined to the boundaries of the recent congestion zone. There is, however, no change in the bearish outlook for the stock. The view of a drop to the Rs 105-110 range is valid. 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 around the Rs 137-138 range. Short positions may be considered on price rally, with stop-loss at Rs 136.

Satyam Computer (Rs 405): After an initial downtrend in the early part of the week, the stock recovered ground subsequently. The near-term outlook is bullish and a move to the Rs 416-420 range appears likely. A close above Rs 422 would help the stock reach the Rs 445-450 range. Hold with a stop-loss at Rs 384. Fresh long positions may also be considered with a stop-loss at Rs 392. Sell a portion of the holdings if the stock faces resistance at the Rs 416-420 range.

Infosys (Rs 1998.1): The stock dropped to the target zone of Rs 1885-1895. There is a series of resistance levels bunched at close intervals. The immediate resistance is placed at Rs 2010, followed by Rs 2038 and the Rs 2056 band. A close above Rs 2060 would push the stock to the Rs 2110-2120 range. The stock is likely to reverse direction around the Rs 2038-2050 band and drop to the Rs 1880-1900 range subsequently. Holders of long positions may tighten stop-loss on a move to the Rs 2038-2050 band.

Follow-up

Century Textiles (Rs 269.2): The stock moved in line with expectations. The trend turned positive after a short-term correction in the opening session on Monday. The stock ruled firm and also moved to the target zone of Rs 265-270. After hitting a high of Rs 275.4, the stock closed slightly lower at Rs 269.2 on Friday.

Though the stock could embark on a short-term correction phase, the long-term trend remains bullish. After a drop to the Rs 260-264 range, the share price is likely to move to the next target zone at the Rs 295-300 band. Existing holders may remain invested with a stop-loss at Rs 245.

Fresh buying may also be considered on price, weakness with a stop-loss at Rs 255. Partial profit booking may be considered on the evidence of resistance at the target zone of Rs 295-300.

Arvind Mills (Rs 123.6): The stock managed to hold above the crucial bearish trigger level of Rs 106. This was a first sign of strength and the subsequent close above positive trigger level of Rs 120 effectively negated the earlier bearish view.

The stock appears to be headed towards the Rs 128-130 range in the near term. It could face a short-term resistance at this level and resume the long-term uptrend subsequently. The major resistance level for the stock is placed at the Rs 135-138 range. Price weakness may be used to take long positions with a stop-loss at Rs 114 and a target of Rs 135-138 range.

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