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Trading Strategy for the week ending February 6, 2000

One side movement from February 3, 2000 onwards

BSE Sensex: Rising wedge, rounding top and black clouds formation in Sensex chart will 100 per cent favour bears only but only in sensex stocks. Major sensex stocks like ACC, ITC, Telco, Bhel, Bajaj Auto, Colgate, Nestle, Glaxo and Indian Hotels are below their 200 DMA. Any revival in these stocks should be considered as best opportunity to exit only. On last Thursday Sensex had broken a triangle on downside and height is of 200 points, it looks likely that it may tumble to 5170 level. This week, Sensex will have to cross 5420 and 5472 level then only it will show its strength. On the downside it can slide to 5255, 5211 or 5170 is also possible. Above 5472 it will face resistance at 5550 level. Expect one sided movement or reverse trend from fourth trading session.

HDFC: First round of bull run had started from last Thursday itself. The scrip has broken an inverse head and shoulder pattern with high volumes and chart indicates upper freeze session will start very soon and traders can expect a rally up to Rs 405. Buy this stock on every decline. Considering Rs 316 as weekly support take long position in this counter. On upper side it can easily zoom up to Rs 352 or Rs 370. Have an eye on Rs 333 level crossover above this level will create hectic all round buying. Below Rs 316 it can slide to Rs 300.

BSES: No sell signal and positive divergence in mechanical indicators will favour this scrip to bulls only. Heavy accumulation is going on and the scrip is on the edge to spurt in the coming days. On Monday if it decisively closes above Rs 220 then it will give a very powerful buy signal in monthly closing charts indicating that in the coming two months span it will easily zoom up to Rs 350 level. Considering Rs 208 and Rs 200 as weekly trend deciders traders can catch this scrip. On upper side it can flare up to Rs 225 or expect a nonstop rally to Rs 240.

Apollo Tyre: Rally from Rs 150 to Rs 227 is just a small clip of real bull run. Weekly MACD has given a buy signal after a span of three months and it indicates any decline in the stock should be considered as best opportunity to buy. Double bottom formation in daily chart and box chart is indicating that the scrip is ready to touch 280 level very soon. Considering Rs 210 and Rs 203 as weekly support take long position. On upper side it can easily flare up to Rs 230, Rs 244 and threr after it will touch Rs 257.

Silverline: Chart indicates in coming three trading session scrip will top out and expect heavy intra day movement in the third and the fourth trading session. Expanding triangle and rising channel indicates scrip will touch Rs 1,080. Considering Rs 874 as weekly support traders can buy this stock. On upper side after crossing Rs 903 level it can easily flare up to Rs 940, Rs 962 or Rs 985 is also possible. Box chart indicates decisive crossover above Rs 940 will give these levels Rs 960, Rs 1,015, Rs 1,035 or Rs 1,080 is possible. For Monday's trading considering Rs 870 as rock bottom support traders can buy this stock. Upper targets are Rs 925 or Rs 955 is also possible.

Zee Tele: Chances are very bright that by fourth trading session from Monday it will top out with some conditions of levels to be applied. Box chart is indicating that heavy all-round buying will start above Rs 1,340 level. Then it can easily flare up to Rs 1,415, Rs 1,440 or expect a level of Rs 1,520 in the coming days. Weekly support exists at Rs 1,255 and Rs 1,240. On upper side it can flare up to Rs 1,310, Rs 1,340 and there after don't remain short.

Parke-Davis: Chart is indicating from last three month heavy accumulation is going on and scrip is on edge to explode very heavily on upper side, it looks patience will pay unexpected return.100 percent risk free buy. Crossover above Rs 390 will take the scrip up to Rs 408 or Rs 436 level in hours only. Any decline in the stock should be considered as best opportunity to buy, weekly and monthly chart indicates scrip will cross recent all time high level of Rs 510 in coming one month itself. Take a long position in carry forward.

Dig.Equip: Any revival in stock should be considered as best opportunity to exit only. Considering Rs 1,382 and Rs 1,395 as crucial weekly resistance level trader can go short. On the downside a break below Rs 1,298 will take scrip up to Rs 1,215, Rs 1,160 or Rs 1,105. Box chart has already given a powerful sell signal. Investors can exit from this scrip and can catch Rolta, Klg Syst or HCL Tech.

Liberty Shoes and Century Enka: From this level of Rs 161 and Rs 174 both these stocks will double in coming one month itself. Chart is indicating Liberty shoes may touch Rs 500 level by March end any decline in stock should be considered as best opportunity to buy. For this week the level of Rs 152 is a trend decider, on upper side it can flare up to Rs 185 or Rs 215 level is also possible. Century Enka has formed a double bottom formation and accumulation is over expect upper freeze session to continue, minor hurdle exists at Rs 81 there after it will touch Rs 93 or Rs 115 level.

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