Aurobindo Pharma
Current price: Rs 237.95
Target price: Rs 260
The stock has shot out of a trading range of Rs 200 to Rs 225 with very high volumes in the last three sessions. There is strong support available around Rs 233. Keep a stop-loss slightly below that, say around the Rs 230 levels. The stock seems to be worth holding for the long term but it would be prudent to book at least partial profits if a price above Rs 255 is hit.
Dr Reddys
Current price: Rs 986
Target price: Rs 1,100
The target price of Rs 1100 should be achievable over the next three months. While the stock has shown a healthy uptrend and an excellent chart pattern, volumes have been thin. In strictly price terms, a saucer pattern has formed with a projected target of about Rs 1125. However, low volumes make this a "slow" pattern. Keep a stop-loss at around Rs 950.
Infosys
Current price: Rs 4,436
Target price: Rs 4,400
The stock has hit a very strong support but the sentiment seems to be against the stock. The test will come at the Rs 4400 level. If that is broken and the stock closes below it, then Infosys could hit Rs 4200 before finding reliable support. If that support holds, the stock may swing back into the Rs 4750 zone. Many possibilities exist. One is to sit tight and wait. The other is to buy Rs 4400 puts or 4300 puts and perhaps also to buy 4500 calls or 4600 calls. There are other possible mispricings in the F&O segment where Infy is concerned.
Oriental Bank
Current price: Rs 56
Target price: Rs 65
The stock has already achieved several primary targets. The price-volume action does suggest that primary minimum targets will be exceeded. As of now, the stock looks capable of running until the Rs 65 level. Keep a stop-loss at Rs 51. The stock also seems to be a long-term buy.
Satyam Computer
Current price: Rs 261
Target price: Rs 250
The stock has dipped from a trading range of Rs 270 to Rs 290. The next reliable support is around the Rs 250 mark. At these levels, it may be worth making a medium-term investment. If you decide to go short, try and stay hedged by any of the following methods; sell covered Rs 270 calls if you hold the stock. Or sell the January Satyam future. Or buy a bear spread with long Rs 260 put and short Rs 250 put.
