The Hindu Business Line : Weak trend may persist

Nifty (999.65): The movement in Nifty was in line with last week's expectations. After touching a low of 994.2, the index closed marginally higher at 999.65 on Friday. The overall outlook for Nifty continues to remain weak with a slide to the 970-980 band being a distinct possibility. A close below 990 could be used to take fresh short positions while existing short positions would warrant a stop loss at 1032. As of now, only a close above 1035 would negate the weak outlook.

ITC (Rs 635.5): The share price of the company was confined to a relatively narrow trading zone last week. The overall outlook for ITC does not appear positive. A drop below Rs 600 appears to be on the cards. A close below Rs 625 would be en early indicator of a further slide. On the upside, only a close above Rs 665 would impart some sort of positive undertone. Existing holders could use price upmoves to reduce exposures while a close below Rs 625 could be used to take short positions with a close stop loss.

Hindustan Lever (Rs159.55): As expected, the close below the bearish trigger price of Rs 162 has now imparted the bearish trend. The share price of the company appears to be headed towards Rs 140-145 in the next few weeks. As of now, only a close above Rs 170 would warrant a re-assessment of the bearish outlook. On the other hand, a close below Rs 157 would result in the continuation of the recent slide.

Infosys Technologies (Rs 4,100): Though the short-term outlook for the scrip appears positive, the overall outlook remains bearish. A drop to last week's projected level of Rs 3,600-3,650 appears likely. Existing holders could use price upmove towards the Rs 4,250-4,300 range to reduce exposures while fresh buying may be avoided. A close below Rs 3,950 could be used to take short positions with a close stop loss in place.

Satyam Computers (Rs 195.95): The overall outlook for the scrip continues to remain bearish. As observed in earlier weeks, the scrip dropped below sub-Rs.200 level on Friday. A further drop to the Rs.180-185 range appears to be on the cards. Existing holders could reduce exposures on price up moves while fresh buying may be avoided. All short positions would warrant a stop at Rs 220.

(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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