The Hindu Business Line : A mixed trend in pivotal stocks

As observed in the earlier weeks, the stock appears on its way towards the support zone at Rs 875-885 range. A close below Rs 900 would be an early indicator that the stock is headed towards this support zone. Investors may reduce exposures on a rally towards the resistance zone at Rs 940-945 range.

Fresh exposures may be considered on price weakness, as the long-term trend is bullish. The stock could move to the long-term target zone of Rs 1,150-1,200 on the completion of the corrective phase.

Reliance Ind (Rs 789): The stock ruled weak as anticipated last week. It dropped to the indicated support zone of Rs 770-775. The short-term trend appears positive.

The stock could move to the immediate resistance zone at Rs 800-805 range. A close below Rs 775 would be a sign of weakness and may pave way for a drop to Rs 755-760 range. The price movement in the next few days would provide clarity on the medium-term trend.

Investors may hold with a stop-loss at Rs 775. Exposures may be considered on a drop to Rs 755-760 range, as the long-term trend is positive.

Tata Steel (Rs 395): Similar to quite a few frontline stocks, this stock, too, turned weak since Wednesday. In the process, the share price has moved closer to the bearish trigger level of Rs 390. A close below this level would result in a drop to Rs 375-380 band. Hold with a stop-loss at Rs 390. Fresh exposures may be avoided. A trailing stop-loss may be used in the event of a run up in price.

Satyam Computer (Rs 583): The share price ruled firm as anticipated last week. It also moved past the target zone of Rs 575-580 range that has been mentioned in recent weeks. The stock is stuck between the resistance zone at Rs 590-595 range and support at Rs 565-570 band.

A convincing breakout from this range would be a pre-requisite for the onset of a meaningful trend. Remain invested with a stop-loss at Rs 564. Partial profit-booking may be considered on a move past Rs 590. Fresh exposures may be avoided.

Infosys (Rs 2,569): The price movement was in alignment with last week's expectations. The stock ruled firm and moved to the target zone of Rs 2,580-2,600 range.

The near-term trend appears bearish. The stock is already in an overbought zone on the weekly charts.

The price movement this week could be subject to a high degree of volatility with the quarterly earnings announcement due on Monday. A drop below Rs 2,520 would push the stock to Rs 2,440-2,450 range.

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Crompton Greaves (Rs 625): The stock ruled weak as anticipated last week. It also dropped below the bearish trigger level of Rs 620. Though the stock managed to bounce back above this level on Friday, the chances of a drop to the Rs 575-580 range is not ruled out.

Such price dips should, however, be viewed as a buying opportunity as the long-term trend is positive.

A move to the target zone of Rs 825-850 range appears likely. Shareholders may hold with a stop-loss at Rs 540.

Fresh exposures may be considered on weakness, with a stop-loss at Rs 540.

Andhra Bank (Rs 104): Though the expected uptrend did not materialise, the stock displayed considerable resilience during the week. Despite the carnage witnessed on Thursday, the stock managed to hold ground and register modest gains on the weekly basis.

We retain our positive outlook for the stock. A move above Rs 118 would impart strength. A move to the target zone of Rs 135-140 range appears likely.

The positive outlook would be in force as long as the price holds above the stop-loss level at Rs 89.

Remain invested with a stop-loss at Rs 89. Fresh exposures may be considered at prevailing levels as well as on declines, with the stop-loss at Rs 89.

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