Thanks to the strong buying at lower levels, the market managed to show a smart recovery, and the Sensex gained 109 points on Thursday. The main boost came from stocks like Infosys, Satyam Comp, Zee Tele, NIIT, Reliance and HLL.As a result, the index bounced from a low of 3495 points. This level has now become a fresh short-term reference point.While the latest upmove is welcome, resistance is expected at every level on the upper side. It indicates the Sensex has a strong hurdle at around 3900 points.
Among the heavyweights, HLL bounced from a low of Rs 163 and the correction has come upto Rs 177. The stock has a strong hurdle at Rs 195, and in a one-way move, it is unlikely to reach till this level.
ITC also showed marginal bounce but has a strong resistance at Rs 800. Immediate support for the stock is at Rs 730.
Reliance has also shown a smart rally from the low. Strong resistance is expected at around Rs 320.
In case of Infosys, major hurdle is at around Rs 7,000. Satyam Comp has also recovered. For this counter, strong resistance is at around Rs 400. The low formed on Thursday can be taken as a fresh stop loss for long position. The position of Zee Tele is no different. The stock is likely to face resistance at around Rs 340.
NIIT, meanwhile, showed a smart improvement and is heading toward its next hurdle of Rs 1,900.
The stock has made a very good base at Rs 1,400 which can be used as stop loss for long positions.
The recovery has been very sharp in case of Rel Petro. The stock is likely to face strong hurdle at around Rs 58.
Tisco, and ACC also recovered smartly on Thursday. In case of Tisco, resistance is expected at around Rs 100. For ACC, the next hurdle is at around Rs 97.
Overall, while the market has shown a smart recovery, from investors point of view, long positions should still be avoided. For those who have a optimistic view, the bottom formed on Thursday can be used as stop loss levels. Investors should wait for a consolidation.
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