February 12: The Sensex hit a low of 3261, before bouncing back to 3294. That could lead to a minor recovery. The market, however, would face the test on Tuesday. Some follow up is given below.At ACC, do not be in a hurry. Allow it to test the Rs 1293-bottom once more. Let it bounce off from here and then alone, you can consider going long. Probably, Tuesday's closing at the NSE will push the scrip up temporarily.At the moment, however, the scrip has still not shed the danger of moving down further, perhaps even after the Tuesday correction! Arvind Mills should be held for some more time; the downside possibility seems quite limited and the upside potential.
Bajaj Auto has an upside resistance at Rs 512 and trading at this counter is now fraught with risk. I expect an attempt to haul the scrip up and there may be entries at Rs 495. Enter BHEL at Rs 272 or close to it. BSES now appears to be reversing towards the Rs 172-target. You could get in at Rs 166, considering the narrow scope available. At HLL,make an entry closer to Rs 1351; but the counter could be slow in moving up, unless FII buying pushes it up from the now critically low level.
I had predicted that it would go down to Rs 1378; it went down to Rs 1351, but has bounced back strongly. Volumes, too, have gone up. HLL can be a case in point when it comes to how far the market can down. Medium-term investors can now make an entry in ICICI and the price has stabilised. The scrip is likely to inch up in the next BSE settlement. ITC is facing resistance on the upside and it could move down. Book your profit at the top and short selling too is likely at the day's high level.
Reliance's fall has got accentuated on Thursday and with this, its potential for a further fall has strengthened. Enter SBI at Rs 235, as it now appears to have now weathered the storm. SAIL is now readying to move up and could attract investors who would want to ride to Rs 8.60. Medium-term investors should make an entry in Tata Chem as the current slide appears to be over. AtTelco, volumes have shrunk much and that could limit any great fall further. For medium-term, it could start moving up back again and that applies for the short-term even better. Entry in Tisco could prove profitable in the coming week.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
