From THE HINDU group of publications
Sunday, November 04, 2001


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Short-term uptrend in HLL

B. Krishnakumar

ITC (Rs 665): The share price of the company failed to decline below the negative trigger price of Rs 652.

On the contrary, it moved past the positive trigger price of Rs 704, resulting in a sharp spike to Rs 748 on Thursday. The reversal of trend on Friday which erased most of the gains recorded the previous day has blunted the near-term positive outlook. As of now, a decline below Rs 650 would impart further weakness while a close above Rs 749 would have positive implications.

Hindustan Lever (Rs 218.6): As expected last week, the share price of the company ruled weak and touched a low of Rs 208.65. It has since recovered some ground in the last couple of days. The short-term outlook for Hindustan Lever has now turned positive. Existing holders could remain invested. Aggressive traders could take long positions at around the Rs 210-212 range with a stop loss at Rs 205. On the upside, the scrip could touch Rs 225-230 range.

Infosys Technologies (Rs 2,859): The outlook for the stock continues to remain weak. Only a close above Rs 3,100 would impart positive trend. On the other hand, a close below Rs 2,830 would have negative implications for Infosys. As of now, it would safer to reduce exposure in the company as the overall outlook is still weak. Fresh buying may be avoided while a dip below Rs 2,830 could be used to take short positions with a stop at Rs 3,010.

Satyam Computers (Rs 144.85): Similar to Infosys, the outlook for Satyam too appears weak. It would be safer to clip exposure in the company on price upmoves. As mentioned last week, only a move past Rs 170 would impart positive trend in Satyam. Fresh buying may be avoided for the time being. A close below Rs 133 could be used to take short positions in Satyam.

(Note: This column analyses the outlook for major Nifty constituents based entirely on Technical Analysis of the past price behaviour of the company concerned. There is a risk of loss in trading.)

Section  : Markets
Previous : Pare exposure in Reliance
Next     : Weak trend to persist

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