Pressure likely to continue

Deepak Singh Tanwar

The movement was narrow for the Sensex and it showed a marginal fall on Friday. Reliance and RPL provided some help but the rise was offset by a dip on counters like ITC, HLL, Dr Reddy’s, Cipla and Infosys.

The trading volume too remained below Rs 800 crore on the BSE. The star performer was Balaji Tele which hit the 8 per cent upper circuit during the last 30 minutes of trading.

From the index point of view, the position will weaken below 3275 points. The first hurdle lies at 3356 points. While the overall market remained sideways, Balaji Tele topped the volume chart for the second consecutive day on the BSE.

The stock is above short-term hurdles and the position appears positive. The level of Rs 194 should be used as stop-loss for medium-term positions. The next major hurdle for stock is at around Rs 300.
The position of Mukta Arts however is negative, and a major reversal is unlikely. The position of Tips is not encouraging either. Infosys remained dull and the trend may continue in the short run.

Satyam Computer managed to show a positive move but the position will weaken below Rs 148. Zee Tele may get buying support at lower levels.

Digital Equipment continues to dip but the position is relatively better. Wipro showed a sharp dip and the next base for the counter exists only at around Rs 1,320.

The northbound journey on the Reliance counter was on but it may face hurdles at around Rs 350. RPL showed a bounce which should be considered of corrective nature.

The outlook for stocks like SBI, Tisco and MTNL continues to remain weak and long positions should be avoided on these counters. Cipla showed a sharp dip but the medium-term position will start weakening below Rs 1,050.

As for Dr Reddy’s, the position is yet to show signs of weakness. Ranbaxy is expected to face hurdles at higher levels. The cement counters did well but to sustain the upmove a strong buying is required which may not occur.

Overall, as trading volume is yet to pick up, a selective approach is required.

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