Micro Technicals

Hughes Software

Current price: Rs 171.8

Target price: Rs 205

The stock shot up 13 per cent on Friday, on higher volumes. It has thereby completed a bullish saucer formation. Technically, the target for such a formation should be around the Rs 205 mark. We could expect this target to be reached, especially because higher volumes accompanied the breakout. Keep a stop loss around the Rs 145 mark and expect heavy intra-day volatility if you go long.

Infosys

Current price: Rs 3,619

Target price: Rs 3,950

The stock has completed an inverted head and shoulder formation, but has not seen particularly good volumes along with the breakout. The price target should be anywhere between Rs 3,950 and Rs 4,100. There is good support starting just below the current price; however, stop losses should be set around Rs 3,500, because there will be a fair amount of intra-day volatility.

Mastek

Current price: Rs 412

Target price: Rs 475

The stock has broken out of a trading range on the back of high volumes. Sideways trading has continued for a fair length of time, so the breakout should be significant. There is strong resistance at Rs 420, which has been tested several times before.

Wait for a breakout past Rs 420. If there is a breakout, there should be a target of around Rs 475 at least. The downside support starts just below current prices, but a stop loss should be kept at around Rs 390 or Rs 380.

IPCL

Current price: Rs 77

Target price: Rs 92

Technically speaking, the stock has support at Rs 65 levels, when it dropped from around Rs 150. Part of this could be covering by those who had gone short, and now wish to book profits.

We expect the bounce to continue till the price reaches Rs 90. It seems like the immediate downtrend has been broken, although the long-term trend is still negative. Expect a technical bounce to take the stock right up to Rs 90.

Reliance Petroleum

Current price: Rs 22.5

Target price: Rs 27.5

The stock seems to have reversed its long-term downtrend of the past few weeks. It doesn't have a big immediate upside, and will most likely, run into strong resistance above Rs 25-26. But it has reversed direction with good confirming signals.

It appears to be a trade that is safe to hold for a couple of months or until the upside target of Rs 27-plus is achieved. Just in case the assessment of a trend reversal turns out to be incorrect, traders must keep a stop loss around Rs 19, because there will be a serious dip if the stock breaks below Rs 20.