The Hindu Business Line : A show of strength in SBI

Price weakness may be used to enhance holdings. The positive view would be invalidated on a close below Rs 860. Long-term investors may hold with a stop-loss at Rs 860.

Short-term traders may have the stop-loss at Rs 900. A close below Rs 900 will be an early indicator of the onset of short-term bearish trend.

A close below Rs 860 would push the stock into a bearish orbit.

Reliance Ind (Rs 919): The stock ruled firm and also moved to the target zone of Rs 935-940 that was mentioned in earlier weeks.

Though there is a possibility of the stock dropping to the Rs 890-895 range in the short-term, the long-term outlook appears positive. The stock is likely to move to the next target range at Rs 945-950. The bullish outlook would warrant a reassessment only on a close below Rs 810. A close above Rs 936 would be a sign of strength and fresh exposures may be considered subsequently, with a stop-loss at Rs 910. Stop-loss for existing long positions may be placed at Rs 885.

Tata Steel (Rs 385): The price action has been devoid of any trend in the recent weeks. The stock is consolidating in a narrow trading range. This has resulted in a steady contraction in volatility. A sharp movement, triggered by an increase in volatility, often follows such a situation. A close above Rs 400 would be a positive sign, while a close below Rs 365 would impart weakness. Hold with a stop-loss at Rs 365.

Satyam Computer (Rs 760): A bullish trend prevailed as anticipated last week. The stock also moved to the target zone of Rs 765-770. The recent upward move does not appear complete. A rally to Rs 800-810 appears likely. The positive view would warrant a reassessment only on a close below Rs 725. Remain invested with a stop-loss at Rs 725. Fresh exposures may also be considered on weakness, with the same stop-loss.

Infosys (Rs 3,055): The stock managed to close above the trendline that acted as a strong resistance level in earlier weeks. With the company scheduled to announce its third quarter results shortly, the volatility is likely to increase this week. There is strong support at Rs 2,940-2,960. Investors may consider long positions on weakness, with a stop-loss at Rs 2,930. The stock appears to be headed towards Rs 3,190-3,200.

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Asian Electronics (Rs 390.4): Contrary to expectations, the stock ruled weak and recorded a net decline of Rs 11 for the week. The recent fall has not affected the positive outlook expressed last week. The long-term trend remains bullish and the stock appears to be headed towards the target zone at Rs 465-470.

The positive outlook would be negated on a close below Rs 340. Shareholders may remain invested with a stop- loss at Rs 340. Fresh exposures may also be considered with the same stop-loss at Rs 340. A close below Rs 340 would warrant dilution of holdings while a close below Rs 320 would push the stock into a prolonged corrective phase.

Dhampur Sugar (Rs 210): A bullish trend prevailed as anticipated last week. The stock touched a high of Rs 221.3 on Wednesday and edged lower on Thursday. The recovery on Friday confirms the view that the share price is headed towards the initial target zone at Rs 225-230. This view would be valid till such time the price remains above Rs 170. Remain invested with a stop-loss at Rs 170. Fresh exposures may also be considered with the same stop-loss. Exposures may be enhanced on weakness, with a stop-loss at Rs 170.

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