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Trading Strategy for the week ending February 13, 2000

BSE Sensex: For all-round buying and panic selling situations, the Sensex will have to close above 5405 or below 5298 for three consecutive days. Above 5405 it can flare upto 5520 and on downside it can slide to 5190. Thereafter expect a free fall to 5035. These levels are valid for February. For this week, 5405 is a crucial resistance. Below 5275 it can slide to 5165 and the second support exists at 5095. Sensex stocks are looking weak and should be sold on revival.

Hindustan Lever: Any revival in this stock should be considered as an opportunity to exit. Below Rs 2316, it can slide to Rs 2250, Rs 2210 or Rs 2170. Weekly resistance exists at Rs 2380 and Rs 2405. Above Rs 2405 it can flare upto Rs 2465. Two consecutive closes below Rs 2296 will create a panic situation in the market and the scrip may tumble heavily. For Monday trading, it will have to cross Rs 2370, only then will it show strength. On downside it can easily slide to Rs 2300 or Rs 2270.

NIIT: The scrip is a red-hot buy and looks explosive. Above Rs 2903 it will favour bulls and traders can expect a rally upto Rs 3250 or Rs 3575. Considering Rs 2911 and Rs 2855 as weekly support levels, buy this stock. It can flare upto Rs 3100, Rs 3166 or Rs 3230.For Monday's trading, buy with stop loss of Rs 2938 and Rs 2910. Upper targets are Rs 3045 or Rs 3125.

Global Tele: Last week this scrip had crossed a very crucial level of Rs 1618. Above this level it will favour bulls only. Monthly chart indicates minor resistance at Rs 1705 and thereafter it can easily flare upto Rs 1825. A close above Rs 1825 will take it to Rs 2100 or Rs 2375 by month end. Consider Rs 1570 and Rs 1555 as weekly support levels. A decisive crossover above Rs 1680 will take it straight to Rs 1790 or Rs 1900 this week. Below Rs 1555 expect a slide to Rs 1515.

Himachal Futuristic: There are bright chances that this scrip has topped out on Friday and had formed a gravestone Doji which will favour bears. For a fresh bull run it has to decisively cross Rs 1130. Otherwise sell this scrip on every rise. This week, the level of Rs 1022 is a trend-decider. Below this level it can easily slide to Rs 970 or expect a free fall to Rs 932 or Rs 895. It can flare upto Rs 1080 or face resistance at Rs 1130. For Monday trading, the level of Rs 1070 and Rs 1095 will work as resistance levels. On downside it can slide to Rs 1025 or Rs 1000 and thereafter expect a free fall.

Zee: Last week it was clearly mentioned that the scrip will top out by the fourth trading session. Instead of fourth, it appears that the scrip has made a top on the fifth trading session (last Friday). Consider Rs 1420 and Rs 1467 as crucial monthly resistance levels. Unless it crosses these levels, bears will have an upper hand. The level of Rs 1310 is a trend-decider. Above this level it can flare upto Rs 1365 or Rs 1420. Below Rs 1310 expect a fall to Rs 1265 or Rs 1220. Below Rs 1220 expect a drastic fall to Rs 1165.

Silverline: Buy this stock on every decline. Above Rs 985 and Rs 973, it will favour bulls and traders can keep a close eye on the Rs 1029 level. A crossover above this level will take it to Rs 1085 or Rs 1125. Below Rs 973 expect a slide to Rs 940 or Rs 900. The only negative factor for this scrip is that it has formed an expanding triangle but the supply line on upper side exists at Rs 1085. So there are bright chances that it will try to touch Rs 1085 and then expect a heavy slide.

HCL Infosystems: Any decline in this stock should be considered as an opportunity to buy. It has already started its third wave and it will be dynamic. Monthly chart indicates that above Rs 815, bulls will have an upper hand. A crossover above Rs 886 will create all-round buying and the scrip can easily flare upto Rs 955, Rs 997 or Rs 1040. A close above Rs 927 will take this scrip to Rs 1040 in hours. If it breaks Rs 815 it can slide to Rs 775.

Amara Raja Batteries and Novartis: Sell both these scrips on every rise. Sell Amara Raja considering Rs 191 and Rs 198 as weekly and monthly resistance levels. Below Rs 182, expect a free fall to Rs 166 or Rs 145. Rounding top will favour bears in Novartis. Consider Rs 1218 and Rs 1230 as weekly resistance levels. It can slide to Rs 1095 or Rs 1033. Apart from traders, investors can exit from both these scrips.

Framatone Connectors: A real gold mine for traders and investors. Technically, it is one of the best scrips and ready to start a fresh wave and traders can expect non-stop upper circuits in the coming days. Above Rs 280 it will favour bulls, and expect a non-stop rally to Rs 349, Rs 388 or Rs 430. From this level of Rs 303, the scrip will double in the next two months.

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