Micro Technicals

Cipla

Current price: Rs 869

Target price: Rs 935

The stock has reversed from around the Rs 840 levels. It has moved back up on higher volumes. There will be strong selling pressure and resistance coming up around Rs 930-940.

Keep a stop loss around Rs 850 while going long since this pattern has been seen too sharp a reversal to inspire total confidence. The scrip has already seen a sharp drop during the last week.

HDFC Bank

Current price: Rs 195

Target price: Rs 205

The stock has slid suddenly from a trading range. It has strong historic support around Rs 185-190, just below the current prices. If the Rs 185 support is broken, the chances are that the stock will slide to Rs 160 levels.

The chance of a trend reversal followed by an upward movement seems much higher, with limited risk of a downside. Go long and book profits at Rs 205. Keep a stop at 185 or buy as close to that as possible.

HCL Tech

Current price: Rs 219.6

Target price: Rs 235

The stock has shot up on high volumes. It has completed a bullish saucer formation with a target price of about Rs 235. There is powerful resistance above that level, so the target is unlikely to be exceeded. There is strong support around Rs 210-212, so the downside risk is not much. Go long and take profits above Rs 230.

Hero Honda

Current price: Rs 255

Target price: Rs 275

The stock has reversed direction dramatically on Friday rising from a low of Rs 235. It could move up to around Rs 275 before running into heavy resistance.

On a longer timeframe, this appears to be part of a long-term downtrend that started at Rs 400-levels in March 2002. The Rs 230 level could be reliable support as it