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Deepak Singh Tanwar
The Sensex touched a 22-month high this week. In the process, it has crossed the minor resistance level of 4321 points, gaining 168 points over previous week's close of 4194 points. This time, except ITC and HLL, all the povitals remained positive and provided support to the market's northward journey.
With the Sensex crossing its minor resitance level, the next target for the index is at 4600-level. On the downside, it should get a support around 4300 level. The last support on the lower side exits at 4100-level.
So far as individual counters are concerned, HLL has turned weak (at least in the short-run). It has a strong support at Rs 2,277. ITC's performance was worst than HLL. The stock faced strong resistance at Rs 1110 and dipped below the Rs 1050-level. In fact, the stock has broken the three-month trendline, which is an extremely weak signal so far as the short-term health of the stock is concerned. The stock has support at Rs 995.
Among the top counters, SBI is the most impressive. The stock hasgiven a fresh break-out by moving above its medium-term resistance. One can expect a rally at this counter in the near future. For long purchases, a stop loss can be put at Rs 264. The position of Reliance is also decent. The stock has good support at Rs 175 and Rs 172, respectively, and a fall below these levels is unlikely. One can buy the stock with these two stop loss levels. Bhel may remain firm. MTNL and HPCL, however, are expected to move sideways. Hindalco is also near its resistance level of Rs 885.
Among the Tata counters, Tata Tea has shown a smart turnaround. The stock has formed a higher bottom. The stock is expected to advance further. For medium-term players, Rs 385 should be used as a stop loss. Telco is above all the medium-term resistance levels and is expected to move up further.
Tisco is also in a good form. Although it is near its minor resistance level of Rs 168, the outlook for the stock appears bright. ACC will be highly attractive once it crosses the Rs 204-level.
This week,software stocks showed a mixed trend. While Infosys touched an all-time high, Satyam Computers and NIIT dipped. Infosys is strong and is expected to remain firm. Satyam is weak and has a minor support at Rs 1,140.
NIIT is good only above Rs 2,210. Other specified stocks where one can expect a positive move are: Andhra Valley, Bank of Baroda, Bank of India, Bharat Forge, Bombay Dyeing, Colgate-Palmolive, Dabur, Finolex Cables, Essel Packaging, Nocil, Crompton Greaves, SKF Bearing and Voltas.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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