The Hindu Business Line : Focus of the week

Tata Motors (Rs 460.8): The stock has been moving in an extended sideways pattern since February 2004. The price action in the recent weeks has resulted in the completion of a bearish "double top" pattern in the early part of this month.

More recently, a bearish "head and shoulder" pattern was completed last week.

The implication is that the stock could see a prolonged phase of weakness.

A drop to the first target zone at the Rs 435-440 range appears likely. A breach of this level could push the stock to the next support zone at Rs 355-360.

Remain invested with a stop-loss at Rs 455.

Use price rally to reduce exposures. Short positions may be considered on rally, with a stop-loss at Rs 501.

Only a close above Rs 505 would offer some respite to the selling pressure.

ABB (Rs 1657): The stock has been in a major uptrend in the recent years. After touching a high at Rs 1873, the share price has gotten into a corrective phase in the past few weeks.

There appears to be limited downside as the corrective phase appears complete.

The share price could move to the target zone of Rs 1950-2000 in the next leg of the upward move.

The positive view would be valid as long as the stock holds above Rs 1460.

Use price dips to buy the stock with a stop-loss at Rs 1460.

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