The Hindu Business Line : Upward trend likely in Reliance

Reliance Ind (Rs 704): The scheme of demerger took effect from Wednesday. The near-term outlook appears positive. A move to Rs 735-Rs 740 appears likely. The positive outlook would be negated on a close below Rs 685. Remain invested with a stop-loss at Rs 685. Fresh exposures may also be considered with the same stop-loss. Take partial profits on a move to the target zone. A close below Rs 685 would be an early sign of weakness and a drop below Rs 660 would impart a prolonged phase of bearishness.

SBI (Rs 907): The price movement was devoid of any significant trend. The stock recovered ground on Thursday, after having been on a downtrend since Monday. As observed in earlier weeks, the stock appears to have the potential to move to Rs 1,050-Rs 1,100. Only a close below Rs 860 would invalidate the bullish view. Long-term investors may take exposures in the stock at prevailing levels and on declines, with a stop-loss at Rs 860. A close above Rs 922 would be an early indicator of the resumption of the upward move.

Tata Steel (Rs 363): The stock moved in line with expectations. It dropped to the target zone at Rs 335-340 and staged a recovery subsequently. The short-term trend is positive and a move to Rs 375-380 appears likely. Shareholders may hold with a stop-loss at Rs 354. Fresh exposures may also be considered on weakness, with the same stop-loss. Take partial profits on the evidence of resistance at the target zone.

Satyam Computer (Rs 744): Though the stock ruled weak, it failed to drop to the target zone of Rs 700-705. It reversed direction after hitting a low of Rs 713 on Wednesday. The earlier view of a rally to Rs 800-810 is valid. There is strong support at Rs 720-725. Investors may consider long positions around this support zone, with a stop-loss at Rs 705.

Infosys (Rs 2,812): The stock ruled weak and also dropped to the support zone at Rs 2,690-Rs 2,700. After touching a low of Rs 2,705, the stock recovered sharply on Thursday. The near-term outlook is positive and a move to Rs 2,920-Rs 2,930 appears likely. Only a close above Rs 3,000 would reinstate bullishness. Short-term traders may consider long positions on weakness, with a stop-loss at Rs 2,740. A close below Rs 2,700 would be a major negative signal and the stock could drop to Rs 2,575-Rs 2,600 subsequently.

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Mirza Tanners (Rs 171.2): The price action was bereft from any trend and the stock was confined to a narrow trading band of Rs 6 during the week. The recent price pattern has not negated the positive view expressed last week. The stock appears on course to move to the target zone at Rs 195-Rs 200.

The positive view would be valid as long as the stock holds above the stop-loss at Rs 149. Remain invested with a stop-loss at Rs 149. Fresh exposures may also be considered at prevailing levels and on weakness with the same stop-loss. Reduce exposures on a close below Rs 149.

CESC (Rs 254.5): Except for an upward move on Monday, the share price was stuck in a trading zone in the subsequent days of the week. The lacklustre price action does not, however, have a bearing on the last week's bullish outlook. The outlook remains positive and the stock is likely to move to Rs 300-Rs 305.

This view would be in force till such time the stock trades above Rs 234. Shareholders may stay invested with a stop-loss at Rs 234. Fresh exposures may be considered at prevailing levels as well as on declines, with the same stop-loss. Partial profit may be contemplated on the evidence of resistance at the target zone of Rs 300-Rs 305.

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