Thanks to across the board buying, the sentiment remained positive throughout Wednesday. As a result, the index managed to gain 69 points. Satyam Comp, Infosys, Zee Tele, ITC, MTNL, L&T, SBI and HLL made their contribution. The sentiment was so positive that none of the heavy-weights showed a negative close.HLL showed a firm trend in the morning but reacted during the second half of the day. Still, it managed to gain more than 1 per cent. Its position will improve drastically above Rs 195. The level of Rs 188 should be used as stop-loss for long positions. ITC also continued its northbound journey. While the stock is above its short-term resistance, a corrective move is not ruled out.
Reliance remained firm, and the level of Rs 343 can be used as stop-loss. The performance of cement stocks were impressive. ACC moved above its first hurdle of Rs 158. While it has a good base at Rs 152, it may make a fresh support at higher levels.
L&T also made a support at Rs 198, which should be used as a stop-loss level. Minor resistance for the stock is at Rs 205. The stock is likely to do well. Gujarat Ambuja, and Grasim are also above their resistance levels, and may do well.
MTNL also moved above its resistance level. While it has a support at Rs 178, fresh reference point may be made at around Rs 184 Bhel showed a correction, and a sideways move is likely. SBI has come close to its first resistance of Rs 200. The level of Rs 193 should be used as stop-loss. The performance of new economy stocks was also impressive.
Satyam Comp closed at the day's high. The stock is above its short-term resistance, and the level of Rs 395 can be used as stop-loss. Zee Tele moved in a narrow range. The outlook for the counter will improve above Rs 326. As for Infosys, the level of Rs 7,450 should be used as stop-loss.
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