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B. Krishnakumar

ITC (Rs 613): As mentioned last week, the scrip enjoys a crucial support at the Rs 570-575 band. A close below Rs 570 could impart lead to a sharp downside movement. As of now, both the trend and the momentum are still bearish. It is, however, encouraging to notice a positive divergence between price movement and other indicators such as Relative Strength Index and MACD. However, only a break above Rs 650 would impart upward momentum in the scrip. Till such time, it would be safer to stay away from ITC. Existing holders could remain invested while fresh buying may be avoided for the time being.

Hindustan Lever (Rs 186): The scrip appears to be headed towards the previous low formed at Rs 169 in October 2000. The overall price formation since the high of Rs 266 is indicative of further downside risk in the scrip. Given this backdrop, price upmoves have to be viewed as a relief rally in the context of a bear market. Fresh buying may therefore be avoided in Hindustan Lever. Any price upmoves could be used to reduce exposures in the company. As of now, only a move past Rs 205 would reverse the prevailing negative trend.

Infosys Technologies (Rs 3,366): As mentioned last week, the drop below Rs 3,650 imparted extreme bearish sentiment in the scrip. The breach of the crucial support at the Rs 3,480-3,500 range on Friday has further confirmed the weak outlook for Infosys. The scrip could slide to the immediate support that exists at the Rs 3,000-3,100 range. As of now, only a break above Rs 3,800 would impart some sort of positive trend. Existing holders could therefore look for avenues to reduce exposures in the company. Fresh buying may be avoided for the time being.

Satyam Computers (Rs 222): The stock displayed much better resilience at the market place in comparison to Infosys. The price movement last week was confined to a relatively narrow range. Going by the recent price action, it appears that the share price of Satyam could slide below Rs 205 in the near term. A close below Rs 214 would be an early indicator of a slide below Rs 205. In the present market scenario, only a rise above Rs 237 would reverse the prevailing weak trend in Satyam. Existing holders could use price upmoves to reduce exposures in the company.

(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.)

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