The Hindu Business Line : Weak trend in pivotals

The short-term outlook is bearish and a drop to Rs 930-940 appears likely. A close below Rs 960 would confirm the short-term bearish outlook. Hold with a stop-loss at Rs 960 while fresh exposures may be avoided. Only a close above Rs 1,020 would impart positive trend. Traders willing to take risk may consider short positions at Rs 980-990 range, with a stop-loss at Rs 1,020.

Reliance

The price action was in line with expectations. The stock ruled firm and reached the target zone of Rs 835-840 that was mentioned last week.

The short-term outlook appears negative and a test of the support zone at Rs 805-810 is likely.

A close below Rs 800 would impart further weakness and a subsequent drop to Rs 760-770 is not ruled out. Remain invested with a stop-loss at Rs 815 and use price rally to reduce exposures. Only a close above the resistance zone at Rs 850-855 would impart positive trend.

Tata Steel

Though the share price managed to seek higher levels, it fell marginally short of the target zone at Rs 565-570.

After moving to a high of Rs 559, the trend turned bearish on Friday.

The short-term outlook has turned bearish and a drop to Rs 505-515 appears likely.

The bearish trend will be in force as long as the stock rules below the resistance level of Rs 570.

Look to reduce exposures. Short position may also be considered with a stop-loss at Rs 560.

Satyam

Except for a positive trend on Monday, the stock ruled weak on the other days of the week. Though the share price moved past the target zone of Rs 875-880 on Monday, it failed to hold above this level.

The recent price action indicates that the short-term outlook is bearish.

A drop to Rs 785-790 appears likely. A close below Rs 760 would impart further weakness and would push the stock to Rs 720-730.

Hold with a stop-loss at Rs 803 and reduce exposures on strength.

Infosys

As observed last week, a close past the positive trigger level of Rs 3,080 imparted a bullish trend.

The stock moved to a high of Rs 3,400 on Friday, but closed on a weak note at Rs 3,166.

The near-term outlook remains bearish. A drop to Rs 3,100-3,110 appears likely. A close below Rs 3,100 would result in a fall to Rs 3,000-3,025. At the moment, a drop to Rs 3,000-3,025 is the favoured view and only a close above Rs 3,275 would reinstate positive trend.

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