Upmove Is Of A Corrective Nature

Updated: May 25 2002, 05:30am hrs
As the possibility of a war reduced, the market showed a smart recovery on Friday. As a result of across-the-board buying coupled with short-covering, the Sensex recorded an impressive rally of 148 points.

Counters like Satyam Computer, Digital Global, Reliance, Ranbaxy, ITC, Rolta, Aftek Info, Visual-Soft and Hinduja TMT recorded impressive gains.

With the latest rally, the level of 3100 points has become an important reference point for long positions. Although the rally is impressive, the upmove is of corrective nature. A strong hurdle is likely to higher levels. One needs to be cautious of long position at higher levels.

Global Tele: The recovery on this counter was impressive, but it may face a strong hurdle in the range of Rs 124-130. On the downside, the level of Rs 99 becomes an important base. Medium-term position should be offloaded below this support.

Hinduja TMT: One of the few stocks which has managed to recover its entire fall in the last three trading sessions. The outlook for the counter will improve further above Rs 370 whereas medium-term outlook will weaken only below Rs 285.

Nalco: Being one of the disinvestment candidate, it has shown a very good performance in the recent past. A further improvement will not bring any surprise.

The medium-term outlook for this stock is positive. One needs to worry only below Rs 82.

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