Market likely to witness mixed trend

Deepak Singh Tanwar

THE values remained firm for a major part of the day, and the index managed to gain 30 points. No decision was taken at the Sebi board meet on Saturday, and the market responded positively.

The performance of IT stocks was good, and few old economy counters like SBI, GACL, and Tata Power did quite well. Infosys, Satyam Comp, Zee Tele, and SBI helped the index, and the level of 3465 points is to continue to remain as major base on the downside. Major resistance is expected at around 3650 points.

Among the heavyweights, HLL is showing dull movements, and once expect a similar trend in the near future. In the case of ITC, the position will weaken only below Rs 825. As for Reliance, the level of Rs 350 should be considered as first resistance, and the weakness may increase further below Rs 336.

RPL has shown a weak trend, and major reversal is not in sight at this juncture. SBI is the only counter which has been doing well. The stock has a resistance at around Rs 240. Tisco, Bhel, and MTNL showed a dull trend, and a sideway is not ruled out. The cement counters managed to attract buying interest but reacted from their peak levels. GACL has a hurdle at around Rs 190. In the case of Grasim, the resistance is at around Rs 320. A move in the range of Rs 315-295 is likely.

For ACC, the level of Rs 138 can be used as stop loss for short-term long positions. The next base for counter is at around Rs 132. As for L&T, immediate base lies at Rs 215, and the major hurdle continues to be at Rs 235.

Among the IT stocks, Infosys managed to show a firm close. While the level of Rs 3,900 can be used as an immediate base, the level of Rs 4100 can be considered as first resistance.

Satyam Comp also showed a positive close but the reaction from the peak was substantial. The stock will continue to face selling pressure at around Rs 240, whereas the base is at around Rs 200. For Zee Tele, the level of Rs 88 is first major base whereas the level of Rs 108 can be considered as first hurdle.

Overall, while select old economy counters are expected to do well, IT stocks may show a mixed trend.
Counters like Tata Power, BPCL, HPCL, Cipla, Grasim, Infosys, and Dig Equipment appear favourable for long positions.

(The analyst does not hold any position in the stocks mentioned above)