Deepak Singh Tanwar

A strong Nasdaq had a very positive impact on opening prices but performance thereafter was not as impressive and the index lost 5 points on Wednesday. Reliance, RPL, Tisco and ACC remained weak whereas Bhel, SBI and Ranbaxy remained firm.

The index too remained in a narrow range. The level of 3520 points is the first resistance and a support is likely at around 3400 points. Infosys opened on a strong note but by the end of the day, it eroded the early gains.

The outlook for stock remains negative and the first resistance is likely at around Rs 3,900. The level of Rs 3,560 should be considered as the first support. Satyam Comp gained more than 2 per cent but is likely to face a hurdle at higher levels.

The first support for the stock is at around Rs 200 and the next base exists at around Rs 185. Zee Tele remained weak and the trend may continue.

Among the other heavyweights, HLL remained dull and the sideways move may continue. Reliance did not show a bounce but the fall may show a slowdown.

RPL continue to show a dull trend. SBI improved marginally, and the corrective rally is likely to continue. Bhel also showed a firm trend and the outlook remains positive.

Tisco and Telco witnessed selling pressure and a sharp rally is not likely. Cipla continues to remain firm. The position will improve further above Rs 1,150. MTNL remained weak, and the outlook remains negative. The cement stocks also showed a weak trend.

ACC dipped sharply and a further fall is not ruled out. The position of L&T is relatively better. Grasim continue to remain firm. GACL may show a sideways move.

Overall, while the sentiment remains negaative, and volumes have shown a fall, trading activities should be reduced and one should be very selective of long positions.

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