NEWS
COLUMNISTS
STOCKS
MUTUAL FUNDS
TAX
INTERVIEW
REAL ESTATE
GOLD
CURRENCY

Trading Strategy for the week ending December 19, 1999

Sensex: This week is the 55th week from the low of 2741 level and chances are very bright that this week will be the last for bulls and there after one side movement for 13 or 21 weeks is not ruled out. Last week Sensex had already given a major reversal on Wedensday, the top of that day i.e 4944 level should be considered as rock top for the whole of this month. This week it will have to cross decisively the level of 4866 then only expect a reversal on upper side. Other wise on the downside sensex can easily slide to 4700 or 4658. Nearest support for Sensex exists at 4762. Any revival in index stocks such as should be considered as best opportunity to exit only, expect free fall in these counters. Instead of concentrating on Software stocks, have an eye on Brand equity stocks; they are ready to show their magic.

ITC: Any revival in this stock should be considered as best opportunity to exit. Considering Rs 689 as weekly resistance, traders can go short. On the downside a decisive break of Rs 666 with high volumes will take this scrip straight to Rs 616 or Rs 580. Minor support exists at Rs 639. Above Rs 689 it can flare up to Rs 705 and consider Rs 711 as rock top.

Atlas Copco: Real gold mine for traders and investors too. Ready to start its third wave and it will be very explosive. Above Rs 229 it will favour bulls only, decisive close above Rs 252 will take this scrip up to Rs 302 or Rs 350 is also possible. Minor resistance levels for this week are Rs 263 and Rs 286. Buy on every decline.

Global Tele: Last week it was clearly mentioned to grab this scrip and expected target by month end was Rs 850 and it had closed at Rs 945 on Friday. So let's see what can happen in this week. Time goal method is indicating that 100 percent scrip will top out latest by Tuesday mid session and vertical fall there after is not ruled out with a condition that the scrip should not close above Rs 992. Above Rs 875 and Rs 858 scrip will be in firm grip of bulls only. On upper side after crossing the above mentioned levels it can zoom up to Rs 1,016, Rs 1,051 or Rs 1,105 is also possible. Below Rs 858 expect free fall. Scrip is on edge to complete its bull run, have an eye on Tuesday's trading session.

Siverline: Traders are advised to buy this stock above Rs 766 only then only expect real fire works or otherwise go short in this scrip. Two consecutive closes above Rs 766 will take the scrip up to Rs 900 level by this month end. Weekly support exists at Rs 698, above this level it will favour bulls only and it can flare up to Rs 774, 795 or Rs 820. If it trades above Rs 739 then also it is a risk free buy. Below Rs 698 it can slide to Rs 660 and there after expect a free fall.

Pentafour Soft: Last week it was mentioned that the scrip is a rocket and will shoot up very heavily and traders can see what had happened, four upper freeze in five trading session. The level of Rs 1,247 is a trend decider. On upper side it can flare up to Rs 1,280, have an eye on this level, close above this level will take scrip up to Rs 1,450 by this month end. Minor resistance for this week are Rs 1362, Rs 1,420 or Rs 1,477. Weekly support exists at Rs 1,120 level decisive break below this level can create all round panic.

McDowell, Titan Ind, Atlas Cycle: Investors can grab these stocks to get unexpected return in the coming two months, all three stocks are real gems and can appreciate by more then 50 percent. Above Rs 252 level McDowell will be in the firm grip of bulls only and expect a zoom up to Rs 290 or Rs 330 very soon. Titan Ind has entered into a new zone with high volumes with no divergence in mechanical indicators, above Rs 143, it can flare up to Rs 163, Rs 182 or Rs 210 is also possible by this month end. Expect a nonstop rally up to Rs 178, Rs 197 or Rs 220 in Atlas Cycle, above Rs 151 and Rs 143 it will be in firm grip of bulls only.

Orient Info & Wockhardt Health: Both these scrips are on the edge to flare up very heavily, last hurdle for Orient Info is Rs 211 level, decisive crossover above this level will take it up to Rs 248 or Rs 285 level by this month end. Weekly support exists at Rs 192. Minor resistance levels are Rs 224 and Rs 230. Third trading session from Monday will decide one side movement in this stock. Wockhardt Health, traded as R.R Medicare in NSE had broken a inverse head and shoulder pattern, every decline should be considered as best opportunity to buy this stock, scrip has formed a double bottom and ready to start its new wave too. Above Rs 60 it can zoom up to Rs 91 or Rs 107 or Rs 130 is possible. Investors can invest for period of one month.

Tube Invest & Engineers India: If it revives traders and investors can sell these scrips it looks that free fall in both scrips is not ruled out. Sell Tube Investment considering Rs 130 as minor resistance and Rs 138 as rock top. On the downside break below Rs 124 will take it to Rs 106 or Rs 90. Every revival in Engineers India should be considered as best opportunity to exit. Sell with stop loss of Rs 480, expect free fall to Rs 444, Rs 408 or Rs 353 is possible by this month end.

Stocks

Tell us what you think of this feature