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Trading Strategy for the week ending November 21, 1999

4457 & 4700 are trend deciders

Sensex: Last week it was clearly mentioned that from 4700 level heavy selling will be there and traders can see that it was able to cross this level but not decisively and all the pivotals fell sharply. For real bull run the index will have to close above 4700 level for three cosnsecutive days then only take long postion or square up short postion. The level of 4640 is a trend decider; on upper side it can flare up to 4715 or expect a level of 4752. Below 4640 it can slide to 4557 and there after expect a free fall to 4462. Any revival in sensex based stocks should be considered as best opportunity to sell only.

RIL & SBI: The level of Rs 230 and Rs 228 are last major support for these scrips. Close below these levels will create all round heavy selling. Expect a free fall to Rs 217 or to Rs 210 in Reliance and SBI can slide to Rs 213 or Rs 195 is also possible. Unless both these scrips crosses and closes above Rs 243 and that too with high volumes, bears can go short in these scrips, or bulls can take long postion with stoploss of above mentioned levels. Above Rs 243, Reliance can flare to Rs 250 or Rs 258 in hours only. And SBI can flare up to Rs 261 or to Rs 279.

ITC: Be cautuious, on going rally from a low of Rs 628 is a 100 per cent corrective rally only, and days count method is indicating that fifth and tenth trading session from Monday will be very volatile. Above Rs 762 level bulls will have upper hand. On upper side it can flare up to Rs 810 or expect a level of Rs 832 in this week. If it is able to close above Rs 832 then in hours it will try touching Rs 900. Below Rs 762 it can slide to Rs 740 or expect a fall to Rs 720. The level of Rs 762 is a trend decider for whole month.

Mah & Mah: Its a iron hot buy, scrip has formed a triangle and its height is of Rs 135, a decisive close above Rs 391 level will create panic buying in this counter. Considering Rs 375 as weekly and Rs 364 as monthly support, traders and investors can take long postion in this counter. Above Rs 391 it will zoom to Rs 422, Rs 450 or Rs 482 is possible. Buy this stock on every decline, it looks that this scrip will move in oppposite direction of the market.

MTNL & VSNL: Any revival in both these stocks should be considered as best opportunity to exit only. The level of Rs 187 is a trend decider for MTNL, if it trades above this level it can flare up to Rs 197 or to Rs 208 but chances are very remote. Below Rs 187 it will favour bears only and expect a slide to Rs 173 or Rs 164. Below Rs 1,405 level and Rs 1,388 level it will favour bears only, scip is on the move to make lower top formation and it looks thay it may slide to Rs 1,295, Rs 1,232 or expect a free fall to Rs 1,160. If it starts trading above Rs 1,404 level then expect a jump up to Rs 1,470. VSNL looks red-hot sell.

Satyam: Considering Rs 1,630 as rock bottom or crucial support level, traders can decide their strategy. Crossover above Rs 1,701 will take scrip the straight up to Rs 1,785 and last major hurdle for this scrip exists at Rs 1,808. Fourth trading session from Monday will give 100 per cent trend reversal for this stock. If it is able to close above Rs 1,808 level then in hours only it will zoom up to Rs 1,990 level. Have an eye on Rs 1,630 level, if it breaks and starts trading below this level then expect a free fall to Rs 1,565 or to Rs 1,515.

KLG Systel: Weekly charts is indicating that its ready to start its third wave, and there are no divergence and sell signal in mechanical indicators too. It looks that in the coming days the scrip will move up only and wave count is indicating that in three months time the scrip may touch Rs 800. For this week it will have to cross Rs 396 to show its real strength and there after it can flare up to Rs 420. Two consecutive closes above Rs 396 will take the scrip up to Rs 520 before month end. Weekly support will be given by Rs 345 below this it can slide to Rs 320.

Sandesh, Balrampur Chinni & Jain Studio: Till today neither any bull or bear has touched these scrips, but charts are indicating that these three stocks will create magic in the coming days. Above Rs 146 level, Sandesh will be in firm grip of bulls only and crossover above Rs 167 will take the scrip up to Rs 196. Decisive crossover above Rs 126 level in Balrampur chinni will take it up to Rs 152 or Rs 173. Jain studio has closed above a very crucial resistance of Rs 145, the scrip will flare up to Rs 175 and by month end it can touch Rs 220. Instead of trading in Jain studio, start picking up delivery.

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