SBI (Rs 680.4): The stock failed to close above the resistance level of Rs 690. This resulted in a sharp drop on Friday. The recent price patterns suggest that the downward move witnessed on Friday could continue. A decline to the Rs 655-660 range appears likely. Holders of long position may consider dilution of holdings while short positions may be considered on intra-day rally, with a stop-loss at Rs 696. A close below Rs 650 would impart further weakness and would push the stock to the Rs 620-625 range.
Reliance Ind (Rs 566.8): The stock ruled firm as anticipated last week. It managed to move closer to the target zone of Rs 575-580. The share price appears on course to move to this target zone. Hold with a stop-loss at Rs 540 for a portion of the holding and at Rs 520 for the balance. Partial profit booking may be considered on a move to the Rs 575-580 range. Fresh exposures may be avoided for the moment. A close below Rs 540 would be an early sign of weakness and a drop below Rs 520 would impart weakness.
Tata Steel (Rs 334.4): The share price ruled weak in line with the view outlined last week. It dropped below the negative trigger level of Rs 343, which has imparted weakness. The short-term outlook remains bearish and a drop to the Rs 305-310 range appears likely. Short positions may be considered with a price target of Rs 305-310 and a stop-loss at Rs 345. The weak outlook would be negated on a close above Rs 345. A close above this level would warrant liquidation of short positions.
Satyam Computer (Rs 463.8): The price movement last week was marked by a high degree of volatility. The price action was devoid of any significant momentum during the week. The near-term outlook would depend on the price movement in the next few days. A close above Rs 478 would impart bullishness and would help the stock move to the Rs 485-490 band. A drop below Rs 455 would have negative implications that would push the stock down to the Rs 430-435 range.
Infosys (Rs 2213.3): Except for a sharp upward move on Wednesday, the stock did not display any significant momentum during the week. The near-term outlook is bearish and a drop to the Rs 2160-2170 range appears likely. Long positions may be considered on price weakness, with a stop-loss at Rs 2170. Shareholders may remain invested with a stop-loss at Rs 2120. The positive view would be negated if the share price closes below Rs 2100.
Nicholas Piramal (Rs 254.1): Contrary to expectations, the stock ruled weak and also moved closer to the stop-loss level of Rs 249. Investors may remain invested with a stop-loss at Rs 249 (on closing basis) as the stock appears to have the potential to bounce back to the target zone of Rs 315-320.
The positive long-term view would be negated if the stock closes below the stop-loss level at Rs 249. A weekly close below this level would indicate that the stock could drop further to the Rs 220-225 band. Fresh exposures may also be considered on close above Rs 278, with a stop-loss at Rs 254. Exposures may be enhanced on a close above Rs 295.
Aztec Software (Rs 123.2): After a sharp upward move on Monday, the stock failed to make any headway on either direction. The outlook remains bullish and the stock appears on course to move to the target zone of the Rs 145-150 range. Long positions may be considered on weakness, with a stop-loss at Rs 100.
Investors who have entered at fairly lower levels may hold with a stop-loss at Rs 100. Exposures may also be enhanced on a close above Rs 131, with a stop-loss at Rs 115. While a close below Rs 115 would an early sign of weakness, a close below Rs 100 would almost negate the positive outlook.