Sentiment To Remain Weak

Updated: May 31 2002, 05:30am hrs
HLL, Reliance and RPL witnessed strong selling pressure and the impact was clearly seen on the Sensex which lost 25 points on Thursday. Other stocks like NIIT, Digital Global, Mastek, Zee Tele and Global Tele also remained under pressure. Polaris meanwhile managed to show a positive close.

The outlook for the index continues to remain far from impressive and a sideways to negative move is likely in the short-run. As mentioned earlier, the level of 3265 is an important hurdle.

Polaris: Despite reports that Sebi will investigate into insider trading, the stock managed to do very well on Thursday. The medium-term outlook for the stock is positive and long position should be liquidated only below Rs 247. On the upper side, after a minor resistance at Rs 285, a strong hurdle is likely in the range of Rs 320-340.

VisualSoft: In the recent fall, the stock has broken its short-term bottoms, and the level of Rs 220 is fresh reference points. All long positions should be liquidated below this base. On the upper side, the level of Rs 270 is an important hurdle and crossing this level will not be an easy task.

Adlabs: In the last six trading sessions, the stock managed to recover its entire fall from Rs 57 to Rs 85. While the medium-term position for the stock is positive, a fresh bottom is likely to be made at around Rs 70. On the upper side, a major resistance is likely at around Rs 110.

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