The Hindu Business Line : Positive trend in Reliance

Reliance Ind (Rs 654.7): The stock moved in line with expectations. It ruled firm and moved comfortably past the target zone of Rs 630-635. It appears on course to move to the next target zone of Rs 675-680 that was mentioned last week. Beyond Rs 680, the stock faces resistance at the Rs 695-700 range. Holders of long positions may continue to do so, with a stop-loss at Rs 610. Partial profit booking may be considered on evidence of resistance at around the Rs 680-690 band.

SBI (Rs 678.8): The stock turned direction right at the target zone of Rs 655-660 that was mentioned in earlier weeks. The near-term outlook appears bearish and a drop to the Rs 660-665 range appears likely. A close below Rs 650 would impart further weakness and the stock could drop to the Rs 625-630 range subsequently. Stop-loss for long positions may be placed at Rs 660. Fresh short positions may be considered on intra-day rally, with a stop-loss at Rs 690.

Tata Steel (Rs 363.4): Contrary to expectations, the stock ruled firm and also closed above the positive trigger level of Rs 345. The close above this level imparted strength and the share price moved to a high of Rs 373 on Thursday. The short-term outlook is bearish and a drop to the Rs 348-352 range appears likely. A convincing upward trend would take shape only when the stock closes above the crucial resistance level at Rs 385. Until such time, a drop to the earlier target zone of Rs 305-310 would be the preferred view.

Satyam Computer (Rs 498.1): The stock ruled firm and also moved past the target zone of Rs 505-510. After touching a high of Rs 519 on Wednesday, the stock turned weak and closed below the Rs 500 mark for the week. The near-term trend appears weak. The share price could drop to the Rs 470-475 range. The short-term bearish view would be in force as long as the stock trades below the stop-loss and resistance level at Rs 520. Shareholders may take profits and consider re-entry on price dips.

Infosys (Rs 2,313): The share price ruled firm as anticipated last week. It moved to the target zone of Rs 2,380-2,400 and turned weak in the last couple of days. The weak trend in the American markets, the Nasdaq in particular, appears to have affected market sentiment towards technology sector stocks. The near-term trend appears bearish and the stock may drop to the Rs 2,220-2,250 range. Shareholders may take partial profits and have a stop-loss at Rs 2,200 for the balance.

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Aftek Infosys (Rs 91): Except for a sharp move up on Monday, the stock ruled weak in the remaining days of the week. This has, however, not negated the positive view expressed last week. The stock appears on course to move to the target zone of the Rs 110-115 range. The positive view would be valid as long as the share price holds above the stop-loss level at Rs 75. A close below this level would warrant dilution of holdings. Fresh exposures may be considered on a close above Rs 100, with a stop-loss at Rs 85.

Munjal Showa (Rs 319.5): The share price ruled weak as expected last week. The stock appears to have completed the earlier short-term corrective phase. There appears to be marginal downside risk from prevailing levels. As observed last week, the long- term uptrend would reassert itself, pushing the stock to the target zone of Rs 365-370. The positive outlook would be under threat if the stock closes below Rs 290. Shareholders may remain invested with a stop-loss at Rs 289. Fresh exposures may be considered on a close above Rs 335, with a stop-loss at Rs 310. Long positions may be diluted on a close below Rs 289.

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