Thanks to Infosys' strong opening on Friday morning, the market outlook changed dramatically. The close on Thursday was far from impressive especially on the software counters. But Infosys' opening at circuit level managed to attract buyers on other software counters, too. Satyam Computers also provided a major boost with an opening gap of Rs 80. During the later part of the day, the rest was taken care by the SBI's upper circuit. Firm trend on ITC and HLL also made its contribution and the Sensex gained 25 points on Friday. On weekly basis, the Sensex added 53 points in its account.If one were to go by the close, the outlook for the next two days is bright. HLL's entry into no-delivery would definetely have a positive impact on the Sensex. ITC, too, appears strong and is expected to remain firm in the coming days. A move above Rs 1020 would be an extremely bullish sign for the stock. SBI, too, closed very strong. The stock faces strong resistance at Rs 231. A move above this level would be healthy.Theposition of other counters like MTNL, Castrol and Bajaj Auto is fair. Reliance is, however, has not shown sign of strength. The fall is expected to last for some more time.
Since the three heavyweights -- HLL, ITC and SBI - are expected to remain firm in the coming days, the Sensex would have little option but to show a similar move. As far as the resistance for the Sensex is concerned, it would be only above 3900-point level.
The outlook for the software stock is extremely bright. Most of the stocks have closed at their all-time high which is a bullish sign. Satyam Computers, Infosys, NIIT and Pentafour Software fall into this category. The outlook for other stock Silverline, Rolta and HCL is also bright.
Among the Tata counter, Tisco and Telco, however, are weak. Tisco has good support only at Rs 110. Telco would be bad below Rs 180. Tata Tea has shown a mixed trend. Outlook for the stock is negative unless it moves above Rs 460.
Other counters where positive move is expected are: Godrej Soaps,Gujarat Ambuja Cements, Hero Honda, L&T, Nestle, Philips, Reckitt & Colman, Siemens, and Wartsila NSD. Among these, Gujarat Ambuja Cement, Siemens and Hero Honda appear very attractive.
Stocks where negative trend is likely are: Apollo Tyres, Century Textiles, Essar Steels, Great Eastern Shipping, Hotel Leela, IFCI, Kesoram and Reliance Capital. In fact, Apollo Tyres, Century Textile, GE Shipping, and Reliance Capital have given a fresh sell signal.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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