Undertone will remain positive

Deepak Singh Tanwar

Sentiments remained firm on Monday and majority of stocks hovered in the positive territory for a major part of the day. Satyam Computers, HFCL, Infosys, HFCL, Wipro, NIIT, Aftek Info and Zee Tele showed handsome gains.

The index, too, managed to gain 25 points and the outlook remains positive. A sideways to positive move is likely in the short run. The first major hurdle lies at 3500 points. Infosys maintained its uptrend and is above its first major resistance of Rs 4,700. The next resistance should be at around Rs 5,000. Satyam Computer, meanwhile, was in the limelight. It did not stop at its resistance of Rs 280 and hit the upper circuit of 10 per cent.

Looking at its strength, further improvement is not ruled out. Wipro also attracted buying interest and the outlook continues to remain favourable. Zee Tele also hit the upper circuit and further improvement is not ruled out. The performance of NIIT, SSI, Digital Global was also positive and a steady improvement is expected on on these counters.

Second rank software counters showed a mixed trend. Polaris witnessed profit-booking and showed a negative close. Its medium-term position, however, remains positive and the uptrend may gather momentum above Rs 230. Mastek showed a sideways move and the uptrend is likely to be on. The position of Visualsoft and Aftek Info also remains reasonable.

The outlook for old economy counters has also been improving steadily. Reliance showed a firm trend and the outlook will continue to remain positive. RPL may also show a sideways to positive move, but its position is not very impressive. ITC, SBI, Tisco and Telco may also display a firm trend. The performance Bhel, Ranbaxy, Dr Reddy’s Labs, Cipla and HPCL may also remain positive.

The cement counters, meanwhile, showed a mixed trend. ACC closed in the negative territory. A consolidation is expected around current levels. Other stocks like L&T, Grasim and GACL may also show a mixed trend.

Overall, while sentiments are strong, selective buying can be done.

(The analyst holds long position in Wipro, Mastek, Polaris, Reliance and NIIT)