Sideways move may continue

Deepak Singh Tanwar

The sentiment was mixed for a major part of the day and the Sensex dipped 20 points on Wednesday. A fall on counters like ITC, SBI, RPL, Bhel and Dr Reddy’s had an impact.

The overall trading volume too remained stable. Balaji Tele, Castrol and Ranbaxy were the key gainers. From the index point of view, a bounce is not ruled out whereas a minor base lies at 3275 points. A major hurdle exists at 3380 points.

Among the IT counter, Infosys continue to remain in a narrow range, and the position as mentioned earlier will weaken below Rs 3,585. Zee Tele remained in a narrow range but an uptrend is expected.

Satyam Comp may show a sideways move. The level of Rs 148 can be used as stop-loss for traders. Digital Equipment is showing positive signs and the position will improve further above Rs 494. The level of Rs 467 can be used as stop-loss.

Wipro also appears favourable. Reliance is firm and a further move is not ruled out. RPL however is weak. The position of SBI is also far from impressive. Bhel and MTNL also appear weak.

The position of Tisco and Tata Tea is no different. Ranbaxy did very well and a major hurdle for the counter is at around Rs 600. Dr Reddy’s dipped but the medium-term position is yet to shown signs of weakness.

Cipla also appears favourable. The cement counters remained dull and a sideways move is expected. Among the media stocks, Balaji Tele hit the upper circuit of 8 per cent and remained there for the second half. The uptrend is likely to continue. The stop-loss for long positions is Rs 194.

Mukta Arts and Tips also improved but their position is not as impressive. Overall, a mixed trend is likely to continue.

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