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B. Krishnakumar

NIFTY (932.2): The failure to move past 984 and the subsequent drop below the support level of 965 has effectively negated the earlier positive outlook. As observed last week, the break below 965 triggered a sharp slide in the index. The overall outlook has now turned bearish. A slide towards the 840-850 level appears to be on the cards. A drop below 830 could lead to a further drop to the 780-790 range.

ITC (637): As observed last week, the scrip continues to be confined to a narrow trading band. There is no evidence of a break-out from this band as yet. The scrip neither managed to break the positive trigger level at Rs 660 nor did breach the bearish trigger at Rs 620. A firm trend would not take shape unless ITC breaks past any one of this trigger levels. Given this backdrop, it would be safer to stay aloof from ITC until such time the scrip manages to make a decisive breakout in one particular direction.

Hindustan Lever (Rs 160.55): The drop below the bearish trigger price of Rs 172 resulted in a sharp slide in the scrip. The share price of the company also dropped below the earlier support levels at Rs 163-164. The overall trend in the Hindustan Lever counter continues to remain weak. There exists a possibility of the scrip testing the Rs 130-140 band in the near term. Existing holders could look for opportunities to reduce exposures in the company. Fresh buying may be avoided for the time being.

Infosys Technologies (Rs 3,745): The share price of the company was confined to a narrow band last week. It was, however, positive to notice that the scrip did not drop sharply even while the overall market sentiment remained weak. As mentioned last week, only a break below the Rs 3,600 mark would negate the positive outlook while a move past Rs 3,910 would trigger a buy signal. Existing holders could remain invested with a stop loss at Rs 3,600. Fresh long positions may be considered once the scrip moves above Rs 3,910.

Satyam Computers (Rs 213.2): The drop below Rs 215 (mentioned last week) has resulted in a further slide in the share price of the company. Some sort of a "triangle" pattern appears to be taking shape in daily chart. If this view is valid, the scrip should find support at the Rs 193-195 band. On the upside, the share price of company could face resistance at the Rs 235-238 range. As a clear-cut trend is yet to emerge, it would be safer to wait for a while taking trading decision.

(Note: The analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. Analysis and price targets are based on the Elliott Wave Analysis. There is a risk of loss in trading)

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