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B. Krishnakumar

Reliance Ind (Rs 536.2): The stock ruled firm on Monday and moved closer to the resistance level of Rs 558.

After touching a high of Rs 555.7, the trend turned weak. The share price is ruling close to a crucial support level of Rs 533. A close below this level would be an early sign of weakness while a drop below Rs 520 would have major negative implications.

Remain invested with a stop-loss at Rs 520. Short positions may be considered with a close stop-loss on a drop below Rs 520.

Infosys (Rs 2,031.7): The stock closed above the crucial resistance level at Rs 2,060. It, however, edged below this level during the last couple of days. The near-term trend hinges on the price movement in the next few days. A close above Rs 2,080 would be a sign of strength. On the other hand, a close below Rs 1,990 would impart weakness.

Remain invested with a stop-loss at this level and use a trailing stop-loss in the event of an upward move.

Tata Power (Rs 368.3): The stock failed to move past the positive trigger level of Rs 372. It, however, managed to hold above the negative trigger level of Rs 345. The price movement over the next few days would be critical in deciding the near-term trend. The recent price patterns suggest that the stock is likely to stage an upside breakout. A close above Rs 380 would confirm the positive view. On the contrary, a drop below Rs 355 would have negative implications. Shareholders may remain invested with a stop-loss at Rs 355.

Hindustan Lever (Rs 131.4): There is no significant change in the view expressed last week. The stock managed to hold above the bearish trigger level of Rs 130. It closed on a relatively positive note on Friday. A drop below Rs 130 would be an early sign of weakness; a close below Rs 125 would validate the earlier view of a drop to Rs 105-110 range.

Remain invested with a stop-loss at Rs 130. Fresh exposures may be avoided. Short positions with a close stop-loss may be considered on a close below Rs 130.

Satyam Computer (Rs 423.2): The share price moved in line with expectations. After moving past the target zone of the Rs 426-428 range, the trend turned weak since Wednesday. Holders of long position may have a stop-loss at Rs 415; fresh exposures may be avoided for the moment.

A drop below this level would impart weakness and could push the stock to the Rs 390-395 range.

Follow-up

Finolex Industries (Rs 82.8): The stock ruled firm as anticipated last week. After touching a high of Rs 84.7, it closed at Rs 82.8 on Friday. The near-term trend remains bullish and the share price appears on course to move to the target zone of Rs 88-90.

Holders of long position may remain invested with a stop-loss at Rs 68. Fresh exposures may be considered on price weakness with a stop-loss at Rs 74. Use a trailing stop-loss in the event of a run-up in price. Shareholders may consider partial profit-booking if the stock faces resistance at around Rs 88-90 band.

Bombay Dyeing (Rs 333.3): Contrary to expectations, a bearish trend prevailed during the week. As a result, the stock has moved closer to the stop-loss level of Rs 324. The recent price pattern has blunted the earlier positive outlook.

Though the long-term trend remains bullish, a drop below Rs 324 would delay the resumption of the long-term bullish trend. Investors may sell at least a portion of the holding on a drop below this level. Fresh exposures may be avoided.

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