Auto, refinery stocks in demand

Updated: Jan 21 2002, 05:30am hrs
Last week saw consolidation on a large number of counters. The start of the week was on a positive note as chances of war reduced drastically. On weekly basis, the index closed marginally higher but selective counters showed impressive gains. Digital Global was in the limelight as far as the IT related counters are concerned.

Stocks from automobile, and refinery sector also remained in great demand. Telco, HPCL, M&M, Bajaj Auto, BPCL, SBI were the star performers.

The overall trading volume also showed improvement especially during the second half of the week.

Although the week closed on a weak note, the outlook is yet to turn negative.

The undertone of the market has been positive, and the war factor has been discounted to a large extent. A negative indication for the fourth quarter working by IT majors like Infosys, and Wipro has also been absorbed well by the market, and the negative impact of this factor may be eased in the first half of the next week. Technically speaking, the index has a major base at 3100 points, and the immediate reference point is at 3300 points.

Overall, a positive to sideways move is expected from the sensex. As far as the upper side is concerned, the first leg of a bull run may start above 3500 points. That, however, may take a while.

Counters like Reliance, SBI, ITC, Bhel, HPCL, Grasim may perform well.

The outlook for automobile sector also remains positive although the uptrend may slow down as profit-booking is expected at higher levels.

The software stocks may also do well during the second half of the week. Overall, selective long position can be taken at lower levels.