Deepak Singh Tanwar

THE index could gain only one point on Tuesday but the second rank software stocks recorded impressive gains. A positive Nasdaq also had a favourable impact on top IT stocks and a large number of them managed to record satisfactory gains.
But key index-based stocks moved in a narrow range and the index reflected this trend. The only thing which was significant was the fact that the trading volume was relatively high.

The position of the Sensex did not change much and the support may come around 3600 points. The level of 3700 points will continue to act as the first hurdle. Infosys did cross the Rs 4,000-mark but failed to show a close above it.

While the hurdle at Rs 4,100 will continue to play its role, the position will start weakening below Rs 3,630 and will turn bearish below Rs 3,750.

For Satyam Comp, crossing the level of Rs 245 will not be an easy task. The downmove may accelerate below Rs 227. As for Zee Tele, the position will weaken below Rs 117. Major resistance is expected at around Rs 135. Among the other heavyweights, HLL moved in a narrow range, and a sharp reversal is unlikely. Reliance is likely to move sideways whereas RPL will require good buying to sustain at current levels.

SBI continued its downtrend but a bounce is not ruled out. MTNL also dipped and the position will further weaken below Rs 145. The performance of Bhel is likely to be positive. It has a base at Rs 161. Tisco moved in narrow range, and the trend is likely to continue.

The performance of pharma stocks was impressive. Cipla may continue its uptrend. Dr Reddy’s, which did very well, may face selling pressure at higher levels. The cement sector remained dull and a bounce is likely. L&T and Grasim appear better of the lot.

Overall, while IT stocks have done well, signs of a major uptrend is yet to be seen. Selective buying may continue in old economy stocks.

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