The Hindu Business Line : Firm undertone in pivotal stocks

The failure to move down and the subsequent rally towards the positive trigger level have negated the bearish outlook expressed last week. The short-term outlook appears positive and the stock could move to Rs 915-Rs 920.

The positive outlook would be in force as long as the Rs 853 level is not breached. Remain invested with a stop-loss at Rs 853. Fresh exposures may also be considered in the Rs 863-866 band, with a stop-loss at Rs 853.

Reliance Ind (Rs 720): This stock again did not quite move in line with expectations. The share price managed to stay above the crucial support level at Rs 685 and the close past the positive trigger level of Rs 702 had effectively invalidated the earlier short-term bearish outlook. The outlook appears positive and the stock could move to the immediate resistance zone at Rs 740-745. Hold with a stop-loss at Rs 705. Short-term traders may consider long positions on a drop to Rs 707-712, with the same stop-loss.

Tata Steel (Rs 389): There is a strong support at Rs 380-382. The stock is likely to test this level and stage a recovery subsequently. Long positions may be considered on the evidence of support at this price range. Stop-loss for long positions may be placed at Rs 376.

On the upside, there is a strong overhead resistance at Rs 408-410. Traders may consider at least partial profit booking if the stock faces resistance at Rs 408-410. Only a close above Rs 425 would reinstate bullish trend and help the stock move to the longer-term price target of Rs 525-550.

Satyam Computer (Rs 757): The recent price pattern indicates that the stock is gearing up for the next leg of the upward move. As observed in earlier weeks, a move to Rs 800-810 appears likely. Long positions may be considered at prevailing levels as well as on declines, with a stop-loss at Rs 733. A drop to the support zone at the Rs 751-752 range could be used to initiate long positions with a stop-loss at Rs 733.

Infosys (Rs 2,863): The share price is stuck between the resistance zone at Rs 2,990-3,000 and the support at Rs 2,830-2,850. Investors may consider long positions on the evidence of support at Rs 2,850-2,860, with a stop-loss at Rs 2,825. Take partial profits on the long positions once the stock moves to the resistance zone at Rs 2,990-3,000. The short-term positive outlook would be negated on a close below Rs 2,780.

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Aurobindo Pharma (Rs 601): The stock ruled firm as anticipated last week. The recent price action as confirmed the view of a rally to Rs 850-900. The recent rally has, however, pushed the stock into an overbought zone. The stock is likely to get into a short-term corrective phase. Considering that the long-term outlook is positive, price weakness ought to be viewed as an opportunity to buy the stock. Stop-loss for long positions may be placed at the revised level of Rs 560. Though the breach of this level is unlikely to negate the long- term positive outlook, it would delay the progress towards the move to Rs 850-900.

Asahi India (Rs 112): The stock did not see any significant movement during the week. The lack of momentum has not, however, negated the positive outlook. The stock appears on course to move to the target zone of Rs 135-140. The bullish view would be valid as long as the stop-loss level at Rs 100 is not violated. Long-term investors who have entered at fairly lower levels may settle for a stop-loss at Rs 95.

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