The Hindu Business Line : SBI appears on course to touch Rs 760

SBI (Rs 721.1): The share price has been moving in a trading zone in the recent weeks. The recent sideways movement is likely to end soon and the earlier uptrend is expected to resume shortly. The earlier view of a rally to Rs 755-760 is still valid. The stock appears on course to move to this zone. The positive view would be in force as long as the stock holds above the stop-loss level of Rs 690. Remain invested with a stop-loss at Rs 690. Partial profit-booking may be considered on a move to the target zone.

Reliance Ind (Rs 689.7): The stock moved in line with expectations. It moved past the resistance zone at Rs 675-680 on Friday. A close above this zone confirms the positive outlook. The stock is likely to move to the next target range of Rs 700-710. The positive outlook for the stock would be invalidated if the price closes below Rs 620. The emergence of negative divergence between the price and indicators, 14-day RSI in particular, suggests that the stock could get into a corrective phase shortly. The end of the ongoing rally would mark the start of the expected corrective phase.

Tata Steel (Rs 379.1): The stock ruled firm and also moved to the target zone of Rs 358-365 mentioned a couple of weeks ago. The recent price action indicates that the stock could seek higher levels of the Rs 400-410 range. The stock appears to be tracing out an "inverse head and shoulder" pattern. Going by this assumption, the stock would comfortably move past the target zone and would also effectively negate our earlier bearish view.

Satyam Computer (Rs 532.8): As observed earlier, the trend has turned bullish with the breach of the positive trigger level of Rs 520. The stock has already moved towards the first target zone of Rs 535-540. The near-term outlook remains bullish and a move to the Rs 550-555 range appears likely. Hold with a stop-loss at Rs 505 and reduce exposures on price rally. Fresh exposures may be avoided.

Infosys (Rs 2,236.4): After moving closer to the target zone of Rs 2,450-2,470, the stock went into a corrective phase on July 5. The short-term correction appears complete. The share price could move to earlier mentioned target zone of Rs 2,450-2,470. The positive view would be negated if the stock closes below Rs 2,110. Investors may remain invested with a stop-loss at Rs 2,110; fresh long positions may also be considered with the same stop-loss level. Exposures may be enhanced on a close above Rs 2,285, with a stop-loss at Rs 2,200.

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SRF (Rs 272.9): The stock moved in line with expectations. It comfortably moved past the target zone of Rs 235-240 mentioned a couple of weeks ago. After touching a high of Rs 306, the stock has got into a corrective phase.

The long-term trend remains bullish. The long-term uptrend would resume on completion of the short-term corrective phase being traced out by stock. Investors who have entered at fairly lower levels and those who are risk-averse may consider partial profit booking at prevailing levels.

Fresh exposures may be considered on price weakness or on the evidence of the completion of the corrective phase. Stop-loss for long positions may be placed at Rs 240.

Century Textiles (Rs 312.2): The price movement was in accordance with the view expressed a fortnight ago. The stock has moved to the target zone of the Rs 310-320 range mentioned earlier (edition dated June 12). Investors may consider at least partial profit-booking at prevailing levels.

Investors who are willing to take risk may remain invested with a stop-loss at Rs 285. A trailing stop-loss may be used in the event of a steady run-up in price. Fresh exposures may be deferred.

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