Date:14/11/2004 URL: http://www.thehindubusinessline.com/bline/iw/2004/11/14/stories/2004111401300700.htm

Back Bullish outlook for HLL

B. Krishnakumar

Hindustan Lever (Rs 134.2): After a sharp upward move on Monday, the stock turned weak in the remaining four days. The outlook for the stock remains bullish.

The share price appears on course to move to the target zone of Rs 142-Rs 145 range. Existing stakeholders may remain invested with a stop loss at Rs 127.

A drop below Rs 127 would blunt the positive outlook while a move past Rs 138 would impart strength. Long positions may be considered on a move past Rs 138, with a stop loss at Rs 130. A drop below Rs 127 would warrant dilution of holdings.

Cipla (Rs 278.8): As observed in earlier weeks, the near term trend appears weak. The stock could drop to the support level of Rs 258-Rs 263 zone. The long-term uptrend would reassert itself on the completion of the anticipated downward move. The possibility of a drop to Rs 258-Rs 263 zone would be negated if the stock moves past Rs 290. Those wanting to take fresh exposures may wait for the completion of the current leg of decline.

Infosys (Rs 2,019): The stock was confined to a trading zone last week. The share price oscillated within a narrow trading band of Rs 70 in the last five trading sessions. The outlook for the stock however remains bullish. The earlier view of a rally to Rs 2,110-Rs 2,120 range is still valid. The positive outlook would be in force as long as the stock trades above the stop loss level of Rs 1,920. Hold with a stop loss at Rs 1,920.

Reliance Ind (Rs 545.5): Similar to other index stocks, the share price the company too was stuck to a trading zone. It notched a nominal gain of about Rs 5 for the week. The outlook for the stock continues to be bearish. The negative outlook would be the preferred view till such time the stock moves above the positive trigger of Rs 555. The earlier view of a drop to Rs 475-Rs 480 range would be in force. This view would gain credence once the stock drops below Rs 525.

Hindalco Industries (Rs 1,292): As observed last week, the stock appears to have completed the downtrend at the latest low of Rs 1,176. The outlook continues to be bullish. The stock appears on course to move to the target zone of Rs 1,480-Rs 1,500 range in the near term. Hold with a stop loss at Rs 1,170. Fresh buying may also be considered with a stop loss at Rs 1,230.