Short term trading ideas

Colgate

Current Price: Rs 405.85
Target Price: Rs 420

The stock has bucked the market by moving up, albeit on low volumes. It will run into strong resistance at around Rs 415-Rs 420 but there is solid support at Rs 400 and again at Rs 390. Colgate may be a good defensive holding. Keep a stop at Rs 400 and go long.

Infosys

Current Price: Rs 1,446.90
Target Price: Rs 1,400

The stock has made a downside breakout and hit a support that probably will not hold. It is likely to slide till Rs 1,400 where it will hit a much stronger support. Keep a stop at Rs 1,460 and go short. Be prepared for wild swings caused by the Axon takeover battle. It has the potential for an upswing till Rs 1,510, so be prepared to trade long if the Rs 1,460 stop is broken.

Reliance Industries

Current Price: Rs 1,963
Target Price: Rs 1,885

The stock has slid from the Rs 2,100 level. It has some support at Rs 1,940 but it’s likely to break that and slide till it hits a band of support between Rs 1,880-Rs 1,900. Keep a stop at Rs 1,975 and go short. Start covering at Rs 41,900.

Sun Pharma

Current Price: Rs 1,472.5
Target Price: Rs 1,490

Under less bearish market conditions, one would have hoped that the stock had an upside target of Rs 1,520 on its next upmove. That is unlikely but it should have the potential to climb till Rs 1,490. There is good support at Rs 1,460. Keep a stop at Rs 1,460 and go long.

Tata Communications

Current Price: Rs 470.85
Target Price: Rs 490

The stock has made an upwards breakout on strong volume expansion. It has a likely target of Rs 490 and it may have the strength to go further, till it hits stiff resistance at Rs 500. Keep a stop at Rs 460 and go long.

Note : These trading recommendations are for the current week ending 3.10.2008