The Hindu Business Line : Bullish outlook for Reliance

Reliance Ind (Rs 600.9): The stock ruled firm as anticipated last week and moved comfortably past the target zone of Rs 575-580. The near-term trend remains bullish and the stock could move to the Rs 630-635 range. This move could be followed by a further rally towards the Rs 675-680 range. The positive view is, however, subject to the share price moving past the crucial resistance zone at the Rs 600-605 range. A weekly close above Rs 605 would be a sign of strength. But, a close below Rs 570 would blunt the positive outlook and would warrant dilution of long positions.

SBI (Rs 667.4): The stock moved in line with expectations. It ruled weak and also moved closer to the target zone of Rs 655-660 that was mentioned last week. The near-term outlook remains bearish and the stock is likely to test the target zone this week. Holders of long position may consider dilution of holdings while short positions may be considered on price rally with a stop-loss at Rs 680. As mentioned last week, a close below Rs 650 would impart further weakness and would push the stock to the Rs 620-625 range.

Tata Steel (Rs 340.6): Except for a weak trend on Monday, the stock ruled firm on the remaining days of the week. The share price, however, did not manage to close above the stop-loss level of Rs 345. The earlier bearish view for the stock remains unchanged. The stock appears on course to move to the target zone of the Rs 305-310 range. Short positions may be considered with a price target of Rs 305-310 and a stop-loss at Rs 345. The weak outlook would be negated on a close above Rs 345. A close above this level would warrant liquidation of short positions.

Satyam Computer (Rs 486.5): The stock managed to hold above the crucial negative trigger level of Rs 455 and also closed above the positive trigger level of Rs 478. This helped the stock move to the target zone of the Rs 485-490 range. The outlook remains bullish and the stock may move to the Rs 505-510 range. Remain invested with a stop-loss at Rs 455. Fresh exposures may be avoided.

Infosys (Rs 2,288.8): The share price held above the support level at Rs 2,120 and also managed to seek higher levels during the week. The near-term trend is bullish and a move to the Rs 2,380-2,400 range appears likely. Hold with a stop-loss at Rs 2160. Fresh exposures may be considered on a close above Rs 2,310 with a stop-loss at Rs 2,200. The positive view would be negated if the share price closes below Rs 2,100.

Follow-up

Century Textiles (Rs 253.2): The stock ruled weak as expected last week. It dropped to the support zone of the Rs 250-253 range. The earlier view of a rally to the Rs 310-320 range is valid. This view would be negated if the stock closes below the immediate support level at Rs 240.

Shareholders may remain invested with a stop-loss at Rs 240. A close below this level would push the stock down to the Rs 210-220 range. Remain invested with a stop-loss at Rs 240 while fresh exposures may be considered on a close above Rs 263.

Cosmo Films (Rs 83.3): The price movement last week has not invalidated last week's view of a rally to the Rs 125-130 range. After a sharp rally on Monday, the stock ruled weak in the remaining four days of the week. The near-term trend remains bullish and the stock could resume the rally to the target zone.

As observed last week, a weekly close above Rs 86 would confirm the start of the long-term uptrend. The positive view would be negated on a close below Rs 51. Investors may retain their holdings with a stop-loss at Rs 50. Fresh buying may also be considered on weakness, with a stop-loss at Rs 50.

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