The Hindu Business Line : Mixed outlook for pivotals

Satyam Computer (Rs 646): Except for a sharp spurt on Monday, the price action was devoid of any trend in the remaining days of the week. The short-term outlook is bearish and a drop to Rs 615-620 appears likely. Remain invested with a stop-loss at Rs 638 and reduce exposures on rally. The short-term bearish outlook would be negated on a close above Rs 670.

Infosys (Rs 2714): The stock moved within the striking distance of the target zone of Rs 2775-2800. After touching a high of Rs 2750, the stock turned weak on Thursday. The short-term outlook is bearish and a drop to Rs 2640-2650 appears likely. Look to reduce exposures in intra-day rally. Long positions may be considered on evidence of support at Rs 2640-2650.

SBI (Rs 910): The share price ruled firm and also moved to the target zone of Rs 910-915 mentioned last week. The recent uptrend does not appear complete. After a brief correction to Rs 885-890, the stock is likely to resume the upward journey.

A move to the next resistance level at Rs 955-960 appears likely. Remain invested with a stop-loss at Rs 860. Fresh long positions may be considered on price weakness, with a stop-loss at Rs 860. Exposures may be enhanced, with a suitable stop-loss, on a close above Rs 925.

Reliance Ind (Rs 826): A bullish trend prevailed as anticipated last week. The stock moved closer to the target of Rs 840-845. After touching a high of Rs 835, the stock closed on a relatively weak note on Friday. The outlook remains positive and the stock could move to Rs 845-850 shortly.

The price is likely to move to this target zone after a brief correction towards the Rs 805-810 range. Remain invested with a stop-loss at Rs 795. Fresh exposures may also be considered on weakness, with a stop-loss at Rs 795.

Tata Steel (Rs 369): The price action last week was devoid of any trend. The stock was confined to a trading range. It did, however, manage to hold above the support level at Rs 362. The short-term outlook appears positive and a move to Rs 395-400 appears likely. There is a strong support zone at Rs 359-360. A close below Rs 358 would impart weakness. Hold with a stop-loss at Rs 358. Fresh exposures may be considered on weakness, with a stop-loss at Rs 358.

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Balrampur Chini (Rs 89): Contrary to expectations, the stock was confined to a narrow trading range last week. The price action in the past few days has not, however, affected the earlier positive view. The long-term trend remains bullish and the stock appears on course to move to the target zone of Rs 115-120.

As observed last week, a close above Rs 95 would mark the start of the next leg of bullish move. The positive outlook would be in force as long as the stock holds above the stop-loss level at Rs 78. Investors may hold with a stop-loss at Rs 78. Fresh exposures may be considered either on price weakness or on a breakout above Rs 95.

Ajanta Pharma (Rs 80): The price action was in line with expectations. The stock ruled firm and moved to the target zone of Rs 85-88 that was mentioned last week. After recording a high of Rs 87.7 on Wednesday, the stock went into a corrective mode in the last couple of trading sessions.

The outlook for the stock continues to be bullish. A close above the immediate resistance level at Rs 88 would help the stock move to the next target range of Rs 102-105. There is a strong support at Rs 75-76. Investors may consider long positions now and on declines, with a stop-loss at Rs 73. Exposures may be enhanced with a tight stop-loss on a close above Rs 88.

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