Micro Technicals

Aban Lloyd

Current price: Rs 128

Target price: Rs 155

The stock has almost completed a saucer formation rising from around Rs 98 on very high volumes. There is strong resistance in the Rs 134 zone. If that resistance is broken, the stock could move up to the Rs 155-160 zone. Keep a stop loss at Rs 110-115, since any reaction should stop at good support there. The scrip appears to be one of the few which is genuinely moving against the market and could be used as a hedge.

Hindustan Lever

Current price: Rs 166

Target price: Rs 155

The scrip has dropped to a two-year low, and that too on high volumes. The current price is just above a zone of solid support. Rather than going short on HLL, it may be worthwhile picking it up at slightly lower prices.

The current price formation suggests a consolidation in the Rs 155-160 range. The Rs 155 mark is critical. If you buy, keep a stop loss at Rs 155. Better yet, wait until it drops to Rs 155 before buying. If you sell, book profits at Rs 155. The upside will be limited to around Rs 175.

Nicholas Piramal

Current price: Rs 235

Target price: Rs 217

The stock has dropped on a pattern of consistent and heavy selling in the past three sessions. It has a zone of solid support at Rs 217 and is likely to consolidate after falling to that level. The upside on any rebound will be limited to around Rs 255 since there is heavy resistance above that level. There is some support at the current level but the bears should win.

Tata Steel

Current price: Rs 118

Target price: Rs 130

The stock was bid down till it touched Rs 113. At that level, it saw heavy buying on strong volumes. It is likely to bounce back again to the Rs 130 level. Buyers should keep a stop loss at about Rs 110, because if the Rs 113 support breaks, it will plunge to Rs 102-105. Along with Aban Lloyd, this stock could be used as a hedge against the general market movement.

Wipro

Current price: Rs 1,175

Target price: Rs 1,250

The scrip was hammered down to Rs 1,065, where it found strong support and then bounced back from a double bottom. It has subsequently completed a saucer formation -- which suggests continuing bullishness. It should move higher on the back of strong volumes until it hits resistance at Rs 1,250-1,300. The actual target would be about Rs 1,280, but this is a bear market rally, so be conservative and keeping expectations of the stock touching Rs 1,250. Keep a stop loss at Rs 1,100, if you go long.