Trading strategy for April 24

The Reliance results finally seem to have given a direction to the market, albeit a downward one at that. The undertone appears distinctly weak and the Satyam results might just add fuel to the fire.

Sensex -- Last Close: 2947.33 | Support: 2922, 2826 | Resistance: 3007, 3110

Trading Range - The Sensex opened at 2997.34, moved up to an intra-day high of 3009.01, declined to an intra-day low of 2943.45 and closed at 2947.33.

Review/Outlook - The Sensex has reflected weakness by posting a 5 ½ month low and also by giving a downward "bar" reversal (a bearish signal), while further downside below the 2943 level cannot be ruled out.

ABB -- Last Close: 310.45 | Support: 306, 288 | Resistance: 316, 330

Trading Range - The scrip opened at 316.40, moved up to an intra-day high of 316.40, declined to an intra-day low of 310.00 and closed at 310.45.

Review/Outlook - The scrip has given a bearish intra-day pattern indicating its intention to depreciate further below the 310 level.

MTNL -- Last Close: 92.65 | Support: 85, 63 | Resistance: 95, 103

Trading Range - The scrip opened at 95.45, moved up to an intra-day high of 96.00, declined to an intra-day low of 92.05 and closed at 92.65.

Review/Outlook - The scrip has closed below its support level of 95, indicating weakness and heightening the chances of an intra-day downside.

BASF -- Last Close: 91.80 | Support: 86, 80 | Resistance: 93, 97

Trading Range - The scrip opened at 92.50, moved up to an intra-day high of 93.30, declined to an intra-day low of 91.75 and closed at 91.80.

Review/Outlook - The scrip has closed below the 92 (after hanging on to it for 4 trading sessions) level and also below the 14 trading sessions lows - downside seems possible.

Cipla -- Last Close: 700.45 | Support: 691, 670 | Resistance: 716, 747

Trading Range - The scrip opened at 719.90, moved up to an intra-day high of 721.45, declined to an intra-day low of 699.00 and closed at 700.45.

Review/Outlook - The scrip seems to have finished a prolonged distribution pattern and with the oscillators reflecting weakness a downward breakout seems imminent.