The reaction set in the market today with the Sensex diving to a low of 3889 before recovering to close at 4039. The index opened at 4091, jumping 15 points over the previous close of 4076. It posted an intra-day high of 4113, which was 111 points higher than the previous high of 4102. The intra day low at 3889, was lower by 111 points lower than the previous low of 4000. The RSI indicator has not signalled a sell yet. The stochastic indicator has been kissing its triggerline, up and down for quite some sessions now. Unless this dips further, the technical has to be treated as just the potential for inter-day and intra day correction - not necessarily a sell signal, yet.
Some recommendations follow:
Bajaj Auto is steady and could look up. Entries may be worthwhile at Rs 565. Bhel has not been able to clear the Rs 227 top for three days now. Entries can be made at Rs 205 for intra day trades. At BSES book profit at the upper end, Rs 179 and above. It is time to enter long in Castrol.
Colgate isworth entering at Rs 207 in intra day trades. Those who hold can extact a few rupees more. Entry in Glaxo at Rs 712 should be considered.
Grasim - book profit above Rs.178. Gujarat Ambuja- go long at Rs 302. HLL may bounce at Rs 2170. Enter Hindalco at Rs 585. Go long in ICICI and hold. Buy IDBI at Rs 34. Go long on Indian Hotel. At ITC go long at Rs 1071.
Book profit at Larsen at Rs 275. Go long on Mahindra at Rs 245; add more at Rs 239. Enter MTNL at Rs 179; place a stop loss at Rs 176. At NIIT, go long at Rs 1825. Rs.1808 is a strong support and therefore the risk is limited.
Medium term upside potential good. Go plus on Novartis. Exit Ranbaxy and re-enter at Rs 653. Reliance - Go long at Rs 171 for intra day trades. SBI - enter at Rs 231. Stop loss at Rs 224. Those who have should hold on. Telco - book profit at Rs 193.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page
