Mixed trend is likely

Deepak Singh Tanwar

The trading volume was relatively low on Monday on both the exchanges. While few counters witnessed profit-booking at higher levels, selective buying continued on Reliance, Ranbaxy, ITC, NIIT and Digital Global counters.

In the process, the Sensex gained 12 points. With a sideways move, the important hurdle for its immediate base of 2930 points increases further. While the first resistance lies at around 3000 points, the next major hurdle exists at 3140 points — the low of September 11.

As for individual stocks, Ranbaxy, which has displayed a firm trend in the recent past, continues to do well. The level of Rs 650 should be used as stop-loss for long positions. The major hurdle on the upper side exists at around Rs 740.

A steady improvement has also been seen on the counter of Cipla. The stop-loss for long position should be Rs 1,020. The first important resistance for the counter is at around Rs 1,140.
As for Dr Reddy’s Labs, the outlook also remains positive.

Reliance attracted strong buying and is approaching its major hurdle of Rs 300. RPL may display a mixed trend.

Counters like SBI, ITC, Bhel and MTNL are also expected to move in a narrow range in the near future.

Among the cement counters, L&T managed to attract strong buying and gained 7 per cent. In the processs, it has crossed its immediate hurdle of Rs 164. The next major resistance for the counter is at around Rs 185.

Other cement counters too remained firm and the trend is likely to continue.

As for the IT counters, a narrow movement was witnessed. The first resistance for Infosys is at Rs 3,000, whereas a major problem lies at around Rs 3,250.

Meanwhile, NIIT gained smartly. The level of Rs 125 should be the stop-loss for long positions. It has a major resistance at around Rs 150.

Other counters like Wipro, Digital Global, Zee Tele and Satyam Computer are expected to move in a narrow range.

Overall, while a mixed trend is likely, selective buying in the domestic pharma counters can be done.

(The analyst holds a long position in Ranbaxy and Cipla)