The Hindu Business Line : SBI exhibits strength

The stock ruled firm and also moved to the initial target zone of Rs 950-Rs 960. The recent price action has validated the long-term view of a rally to Rs 1,100-1,150.

After a short-term drop to Rs 945-950, the stock is likely to resume the upward move. Remain invested with a stop-loss at Rs 940. Fresh exposures may be considered on weakness, with the same stop-loss.

The long-term positive outlook would be in force as long as the stock holds above Rs 848.

Reliance

A bullish trend prevailed and the stock moved past the target zone of Rs 750-760. The stock touched a high of Rs 782 and closed a touch lower at Rs 775. The near-term outlook remains bullish and a move to Rs 795-800 appears likely. Shareholders may remain invested with a stop-loss at Rs 745. Fresh exposures may also be considered on weakness, with a stop-loss at Rs 745. Consider partial profit-booking on the evidence of resistance at the Rs 795-800 range.

Tata Steel

Though the long-term outlook is positive, the stock could get into a corrective phase in the near-term. A drop to the immediate support zone at Rs 445-450 appears likely. Remain invested with a stop-loss at Rs 440, as the stock appears to be headed towards the long-term target zone of Rs 525-550. Fresh exposures may also be considered on weakness with the same stop-loss. A close below Rs 420 would negate the positive outlook and would push the stock into a prolonged corrective phase.

Satyam

The stock moved to the target zone of Rs 835-840 that was mentioned in the previous week. The near-term outlook does not appear positive.

The stock could drop to the immediate support zone at Rs 775-780. The long-term outlook remains positive and the stock could move to Rs 875-880. Long-term investors may have a stop-loss at Rs 765. Fresh exposures may be considered in the support zone at Rs 775-780, with a stop-loss at Rs 765.

Infosys

The near-term outlook appears weak. The stock could drop to Rs 2,790-2,800.

A close below Rs 2,750 would impart further weakness and a subsequent slide to Rs 2,600-2,620 is not ruled out.

The trend would turn positive once the stock closes above Rs 3,000. Till such time, it would be advisable to book profits on rally. Fresh exposures may be considered on the evidence of support at Rs 2,790-2,800, with a stop-loss at Rs 2,750.

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