The Hindu Business Line : Firm trend likely in Reliance

Reliance Ind (Rs 730.9): A positive trend prevailed as anticipated last week. The share price also moved past the positive trigger level of Rs 730. This has imparted strength and the stock appears on course to move to the target zone of Rs 775-780. Fresh exposures may also be considered on price weakness, with a stop at Rs 700. A close below Rs 699 would be a sign of weakness; a close below Rs 680 would negate the positive outlook.

SBI (Rs 805.7): The stock rebounded off the key support level of the Rs 750-760 range that was mentioned last week. It also managed to close above the resistance level at the Rs 795-800 range. The near-term trend has turned positive and a move to the Rs 845-850 range appears likely. The positive view would be negated if the share price closes below Rs 770. Remain invested with a stop-loss at Rs 769. Price weakness may be used to take fresh long positions with a stop-loss at Rs 769. Partial profit booking may be considered on the evidence of weakness at the Rs 845-850 range.

Tata Steel (Rs 405.3): Except for a weak trend on Monday, the stock managed to rule firm on the remaining days of the week. The firming up of steel prices appears to have imparted positive sentiment. The stock could move to the resistance at the Rs 415-420 range. Only a close above Rs 422 would impart strength. On the other hand, a drop below Rs 385 would have bearish implications. Stop-loss for long positions may be placed at Rs 384. Fresh exposures may be avoided.

Satyam Computer (Rs 527.7): The stock ruled firm as anticipated last week and also moved to the target zone of Rs 530-535. The weakening of the Indian Rupee in relation to the US Dollar played a role in bolstering market sentiment towards frontline technology-sector stocks. The short-term outlook remains bullish and a rally to the Rs 555-560 range appears likely. A close below Rs 490 would impart weakness and could push the stock down to the Rs 465-470 band. Hold with a stop-loss at Rs 490. Fresh exposures may also be considered on a close above Rs 535, with a stop at Rs 510.

Infosys (Rs 2,384.7): The stock saw a sharp rise consequent to the breakout from the trading range. As observed in earlier weeks, the long-term outlook for the stock is positive. A move to the immediate target zone of the Rs 2,650-2,700 range appears likely. Investors may place the stop-loss at Rs 2,200. Fresh exposures may also be considered on price weakness, with a stop-loss at Rs 2,200. Long positions may be enhanced on a close above Rs 2450.

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Deepak Fertilisers (Rs 91.1): The stock ruled firm as anticipated last week. After touching a high of Rs 93.8, the stock went into a sideways mode since Wednesday. The long-term trend remains bullish and the stock appears to be on course to move to the target zone of Rs 115-120.

Investors may remain invested with a stop-loss at Rs 69; the positive view would be valid as long as the stock holds above the stop-loss level. A close below Rs 69 would negate the positive view and would warrant liquidation of long positions. Fresh exposures may be considered on a move past Rs 94, with a stop-loss at Rs 84.

Mysore Cements (Rs 35.5): The share price shot up on Tuesday and turned weak subsequently. The recent corrective phase does not appear complete. A drop to the Rs 30-32 range appears likely. The long-term trend, however, remains bullish. The stock is likely to commence its journey towards the target zone of Rs 48-50 on the completion of the short-term corrective phase.

Price weakness may be used to take exposures as the long-term trend is positive. Remain invested with a stop-loss at Rs 26; a close below this level will negate the bullish outlook. Fresh exposures may also be considered on price weakness with a stop-loss at Rs 26.

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