Trading strategy for May 5

The market has ended on a positive note ahead of a weekend while the volume (read as turnover) was marginally better. IT staged a smart turnaround while the old economy was terribly mixed (too many crosscurrents) -- the undertone was distinctly better.

Sensex -- Last Close: 2966.63 | Support: 2922, 2826 | Resistance: 3007, 3110

Trading Range -- The Sensex opened at 2949.04, moved up to an intra-day high of 2968.96, declined to an intra-day low of 2939.16 and closed at 2966.63.

Review/Outlook -- The Sensex has formed an upward "bar" reversal (bullish intra-day pattern) while the intra-day charts still seem to suggest further appreciation but this can be expected only above the 2969 level.

BHEL -- Last Close: 232.00 | Support: 221, 208 | Resistance: 234, 247

Trading Range -- The scrip opened at 225.00, moved up to an intra-day high of 234.00, declined to an intra-day low of 223.40 and closed at 232.00.

Review/Outlook -- The scrip has recovered smartly from its intra-day lows to end in positive territory. Bhel has reflected surprising strength while an intra-day upside seems possible.

Digital Global -- Last Close: 537.60 | Support: 535, 500 | Resistance: 550, 572

Trading Range -- The scrip opened at 527.00, moved up to an intra-day high of 539.50, declined to an intra-day low of 522.50 and closed at 537.60.

Review/Outlook -- The scrip has moved sideways for 12 trading sessions, soaking up the supply. The oscillators have turned a shade better and further progress seems possible.

Hero Honda -- Last Close: 205.80 | Support: 193, 186 | Resistance: 208, 217

Trading Range -- The scrip opened at 202.50, moved up to an intra-day high of 206.50, declined to an intra-day low of 199.60 and closed at 205.80.

Review/Outlook -- The scrip has given an upward "bar" reversal and with the oscillators also in a positive frame of mind, further appreciation seems to be on the cards.

L&T -- Last Close: 203.30 | Support: 190, 168 | Resistance: 207, 221

Trading Range -- The scrip opened at 201.00, moved up to an intra-day high of 203.90, declined to an intra-day low of 197.10 and closed at 203.30.

Review/Outlook -- The scrip is in the midst of a short-term uptrend (an intra-day correction was witnessed on Friday itself) while a further upside seems like a distinct possibility.

Stock Track

Scrip Support Last Close Resistance Trend ACC 127, 115 130.45 135, 143 Sd HLL 127, 111 138.45 141, 155 Sd INFOSYS 2405, 1897 2915.45 2985, 3468 Sd ITC 665, 592 680.60 729, 802 Tu MTNL 85, 63 92.55 95, 103 Sd RIL 269, 242 273.50 302, 324 Sd SATYAM 149, 113 160.40 173, 199 Sd SBI 276, 258 281.50 293, 314 Sd TELCO 148, 135 150.95 168, 186 Dt TISCO 131, 125 132.35 139, 150 Tu GLOSSARY : CMP - Current Market Price, MACD - Moving Average Convergence Divergence, RMI - Relative Momentum Index, RSI - Relative Strength Index, ROC - Rate of Change, EMA - Exponential Moving Average, CMP - Current Market Price, Cls - Closing Price, Support - Level where buying can be expected, Resistance - Level where selling can be expected, Tu - Turning Upwards, Td - Turning Downwards, Sd - Sideways, Up - Uptrend, Dt -Downtrend. DISCLAIMER : While efforts have been made to ensure the accuracy of the information provided in this content, the authors shall not be held responsible for any loss, harm or injury arising in any manner whatsoever, including those arising directly, indirectly, consequentially or otherwise and whether financial, mental or otherwise, caused to any person whatsoever who accesses or uses or is supplied with the content (consisting of articles, information, analyses, etc.) provided at this site or who otherwise relies on such content. Readers are advised to cross verify the information and to also seek professional and expert advice before taking any decision based on the content provided above or acting on any recommendations made herein. The information or opinions provided herein are not a substitute for professional advice. Sebi Disclosure: The author has no positions in the stocks mentioned above