On Friday, the BSE Sensex closed at 2784 points. The index lost a close to 64 points as compared to the close of the previous week. The week saw some dull trading as most of the market participants chose to remain away from trading as the festival season is in progress. On account of a string of holidays traders preferred to remain aloof rather than make a commitment in a highly unpredictable market conditions. Most people have been unhappy with the way the market has behaved in the Samvat 2054 and the dullness was evident in the moorat trading itself. The new year has got off to a bad start. Hopefully things will improve in the new year.The market in the last two weeks the market was immune to the bullish news. Recovery in other South-East Asian markets failed to prop up the Indian markets and good results by Reliance failed to improve market sentiments. But, now it seems that the market has failed to decline to emerging bearish information. The recent downgrade by Standard & Poor's (S&P) did not resultin the decline in the index values. In fact, the exact reverse happened. The market actually gained when the downgrade was announced. Though it is too early to predict the actual response of the market, one must always beware of a market not responding to bearish news.
Last week, we had anticipated a decline in the index values and it was mentioned that once the index broke through the level of 2785 points it could decline to a level of 2,713 points. During the week the index broke through the level of 2785 points and rapidly declined to a weekly low of 2741 points. The week saw only two full trading days and nothing much has changed in the due course. Much of the analysis presented in the last week remains unchanged. The index does have a fair chance of declining to 2713 points during the forthcoming week.
On the upside if the index does manage to wriggle above the level of 2850 points then we can look forward to a rally of sizable proportions.
TVS Suzuki: Worth a ride
This stock hasannounced excellent results. Investors may await a breakout from the level of 575 points before buying into it. The stock does show a potential to reach a level of around Rs 650. One may buy on breakout. Keep a stop loss below Rs 560.
ABB: Go long
This stock is oscillating in a range from Rs 490-Rs 530 since last couple of weeks. Traders may buy this stock at current levels for a targeted price level of Rs 530. Keep a stop loss below Rs 480.
Larsen & Toubro: Buy at current level
This stock is very near to its very old support level of Rs 144. To investors this offers a fairly low risk and reward ratio. One may buy this stock at current levels. Keep a stop loss below Rs 135.
TRADERS CHOICE
State Bank: Bank on it
This stock has formed a strong bullish pattern--the piercing pattern. Traders may buy long for a targeted price of Rs 168. Keep a stop loss below Rs 153.
Hind Lever: Go short
Traders may sell short once this stock breaks below Rs 1585 for a downside targetof Rs 1550. Keep a stop loss above Rs 1560.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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