The Hindu Business Line : Weak near-term outlook for SBI

SBI (Rs 805.2): The price action during the week was characterised by a zigzag movement. The stock failed to make any significant move on either direction. The near-term outlook remains bearish. Last week's view of a test of the swing low at Rs 766 remains the preferred view. The bearish view would be negated if the stock closes above Rs 830. Remain invested with a stop-loss at Rs 798. Aggressive traders may consider short positions on a break of Rs 798, with a stop-loss at Rs 810.

Reliance Ind (Rs 705.6): The stock did not see any significant movement during the week. The near-term trend does not appear positive. A drop to the support level at the Rs 680-685 range appears likely. The long-term trend remains bullish and the view of a rally to the Rs 775-780 range remains valid. As observed last week, the long-term positive outlook would be negated if the stock closes below the bearish trigger level of Rs 670. Hold with a stop-loss at Rs 669. Fresh exposures may also be considered on price weakness, with a stop at Rs 669.

Tata Steel (Rs 402.6): After a strong trend in the early part of the week, the stock ruled weak on Friday. The share price managed to move closer to the target zone of the Rs 425-430 range. The near-term outlook is weak and a drop to the immediate support level at the Rs 385-390 range appears likely. The bearish view would be valid as long as the stock trades below the positive trigger price of Rs 422. Investors may pare exposures and consider fresh entry on price weakness, with a stop-loss at Rs 360.

Satyam Computer (Rs 511.3): The stock ruled weak as anticipated last week. It appears on course to drop to the first target zone at the Rs 490-495 range. A break of Rs 490 could push the stock to the Rs 475-480 range. Investors may reduce exposures and consider fresh exposures on support at lower levels. At the moment, it would be safer to stay clear of the stock.

Infosys (Rs 2,292.1): Except for a sharp rise on Wednesday, the price movement was bereft of momentum. The near-term outlook appears weak. The stock is likely to drop to the target zone of Rs 2125-2130. Considering that the long-term trend is bullish, fresh exposures may be considered on price weakness. The stock is likely to move to the long-term target zone of the Rs 2,500-2,600 range on the completion of the expected short-term correction.

... ... ... ... .Follow-up... ... ... ... .

Tata Chemicals (Rs 187.1): Contrary to expectations, the stock price remained confined to a trading range. The price patterns over the past few days indicate that the stock could seek lower levels in the near term. A drop to the Rs 170-175 range is not ruled out.

The short-term bearish outlook would not, however, negate the bullish long-term view expressed last week. The stock would resume its move towards the target zone of the Rs 225-230 range after completing the expected corrective phase. The positive view would be negated only on a close below Rs 160. Fresh exposures may be considered on the evidence of support at around the Rs 170-175 range, with a stop-loss at Rs 160. Exposures may be enhanced on a close above Rs 195.

Cipla (Rs 349.75): The stock posted a modest gain of about Rs 4 during the week. The price pattern recorded last week is in support of the long-term positive outlook. The share price appears in line to move to the target zone of Rs 395-400. As observed last week, the stock is in the midst of the powerful Wave 3 in Elliott Wave parlance. An explosive upward move may be just round the corner. Shareholders may remain invested with a stop-loss at Rs 300. Fresh exposures may also be considered with a stop-loss at Rs 319. Partial profit booking may be considered by short-term traders when the stock moves to the immediate target zone of the Rs 395-400 range.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page