The Hindu Business Line : Positive outlook for Tata Steel, SBI

SBI (Rs 855): The price movement was in sync with the bullish view expressed last week. The stock ruled firm and also moved to the target zone of the Rs 845-850 range. The outlook remains bullish and the stock could move to the next target zone at the Rs 885-890 range. The positive view would be negated if the 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.

Reliance Ind (Rs 741.1): A bullish trend prevailed as anticipated last week. The stock could move to the target zone of Rs 775-780. The positive view would be negated on a close below Rs 690. Long-term investors may hold with a stop-loss at Rs 690. Fresh exposures may also be considered on a move above Rs 746, with a stop-loss at Rs 724. A close below Rs 690 would be a sign of weakness; a close below Rs 680 would negate the positive outlook.

Tata Steel (Rs 409.5): The price movement lacked momentum of any sort. As a result, the stock was confined to a narrow trading range of Rs 7 for the week. The short-term outlook is positive and a move to the Rs 420-422 range appears likely. As observed last week, only a close above Rs 422 would impart strength; on the other hand, a drop below Rs 390 would have bearish implications. Stop-loss for long positions may be placed at Rs 384. Fresh exposures may be avoided.

Satyam Computer (Rs 531.5): Similar to quite a few stocks forming part of the index, the price movement of Satyam, too, was within the confines of a narrow trading range. This lacklustre activity has not negated the earlier view of a rally to the Rs 555-560 range. A close below Rs 520 would impart weakness and could push the stock down to the Rs 500-505 band. Hold with a stop-loss at Rs 519. Fresh exposures may be considered on a move past Rs 539, with a stop-loss at Rs 519.

Infosys (Rs 2,418.4): The long-term outlook for the stock remains positive. A move to the immediate target zone of the Rs 2,650-2,700 range appears likely. Long-term investors may hold with a stop-loss at Rs 2,220. Fresh exposures may also be considered on break above Rs 2,460, with a stop-loss at Rs 2,370. Aggressive traders may also consider long positions on intra-day weakness, with a stop-loss at Rs 2,370.

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KCP (Rs 124.6): The stock was stuck in a trading range last week. After a strong move up on Thursday, it turned weak on Friday. The recent price action has not negated the positive outlook expressed last week. The outlook remains bullish and a move to the Rs 155-160 range remains the favoured view.

The stock is likely to resume the journey towards this target zone after dropping to the immediate support zone at the Rs 118-120 range. The positive outlook would be in force as long as the stock holds above the stop-loss level of Rs 110. Fresh exposures may also be considered on price weakness, with a stop-loss at Rs 109. A close below Rs 109 would warrant dilution of holdings, as this would impart bearishness.

Aftek Infosys (Rs 125.5): The price movement was in line with expectations. The stock ruled weak and appears to be headed towards the support zone at the Rs 115-120 range. As observed last week, the long-term trend is bullish and the stock could move to the target range of Rs 155-160.

The long-term bullish trend would resume on the completion of the anticipated short-term drop to the Rs 115-120 band. Fresh exposures may be considered on price weakness, with a stop-loss at Rs 105. Exposures may be enhanced on a close above Rs 135.

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