Be selective on positions

Deepak Singh Tanwar

The trading volume was close to Rs 1,000 crore on the BSE but more than 10 per cent volume came from block deals. The sentiment remained dull and after remaining in a narrow range, Sensex lost 3 point on Tuesday.

The index has made a minor base at 3397 points, which can be used as an immediate support. As mentioned earlier, a major hurdle exists at 3525 points and chances of crossing this level does not appear bright in the short run.

Infosys remained firm for a major part of the day. The level of Rs 3,600 can be used as an immediate base for short-term positions. Zee Tele remained under pressure throughout the day. While a bounce is not ruled out, the medium-term outlook remains negative. The position of Satyam Comp is no different.

ITC remained firm and the position continues to remain healthy. SBI showed a 3 per cent fall but major weakness will start only below Rs 208. The level of Rs 230 is the first important hurdle.

HLL remained firm but the upside appears limited from the current level. Reliance showed a bounce during the second half and a mixed trend is expected in the near future. RPL may also move in a narrow range. The positions of MTNL, Tisco and Tata Tea continue to remain negative. Telco is expected to show a dull trend. Cement stocks showed a mixed trend. While GACL and Grasim did well, L&T and ACC remained under pressure. For the future too, while the first two are expected to do well, ACC, L&T may display weakness.

The performance of media counters was positive. Mukta Arts remained firm and the level of Rs 148 can be used as stop-loss for long positions. The short-tern outlook will improve above Rs 154. In case of Balaji Tele, the stop-loss is Rs 190. Immediate resistance for the counter is at Rs 205. Overall, the dull trend is likely to continue. Be cautious.

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