12JAN TO 16JAN 2009

Before giving an outlook for the following stocks, it would be necessary to keep in mind that the market indices are showing signs of exhaustion and even reversal in the short term trend. In such a scenario it looks unlikely that there would be any fireworks this week. Rather, the traders can get stuck in a narrow range for another week and most likely to trend lower in weeks to come as upside seems to capped at 10500 on SENSEX and 3150 on NIFTY in the short term. Avoid going long. Instead book profits on every rise and initiate put options on rise above 3000.


RELIANCE(1151)
As mentioned last week, staying away from this counter is suggested this week as well.
However, the short positions may be held onto with stop at 1208 and final stop at 1275.
Lower targets are 1090 and 1021 where some long term buying could emerge. But there seems to be more downside in this stock if 950 is breached.

INFOSYS(1200)
This counter has its quarterly results on the 13th next Tuesday. Last week it mangaed to move past 1200 and retreated back to close below 1200. If it manages to hold above 1200 this week then an upward reversal could start for higher targets.

SBI(1332)
The uptrend seems to be losing steam. This would be confirmed if closes below 1140. Longs only above 1420. Go short on a close below 1140 for targets of 1050 and 1000.