Trading strategy for May 6

The market was driven by a plethora of stocks other than popular heavyweights. Steel stocks were much in demand but the undisputed star of the day was the PSU sector. The volume (read as turnover) was better while the undertone was also on the improvement path.

Sensex -- Last Close: 2975.47 | Support: 2922, 2826 | Resistance: 3007, 3110

Trading Range -- The Sensex opened at 2977.47, moved up to an intra-day high of 2988.69, declined to an intra-day low of 2967.88 and closed at 2975.47.

Review/Outlook -- The Sensex has come off its intra-day high to still end in positive territory. Though further appreciation cannot be ruled out, resistance at higher levels would point towards a probable range bound movement.

BHEL -- Last Close: 239.35 | Support: 234, 221 | Resistance: 247, 268

Trading Range -- The scrip opened at 232.00, moved up to an intra-day high of 240.90, declined to an intra-day low of 231.45 and closed at 239.35.

Review/Outlook -- The scrip has made a consolidation pattern in the form of a rounding formation and with the oscillators springing back to life, further upside seems possible.

Adani Exports -- Last Close: 123.00 | Support: 120, 114 | Resistance: 125, 132

Trading Range -- The scrip opened at 122.00, moved up to an intra-day high of 123.00, declined to an intra-day low of 121.50 and closed at 123.00.

Review/Outlook -- The scrip seems to have made a sound base at the 120 level and has reflected intra-day strength while a further upside cannot be ruled out.

Supreme Industries -- Last Close: 84.00 | Support: 78, 68 | Resistance: 90, 96

Trading Range -- The scrip opened at 081.10, moved up to an intra-day high of 085.00, declined to an intra-day low of 081.00 and closed at 084.00.

Review/Outlook -- The scrip has reflected strength by closing above the 10 day average and with the oscillators in a positive frame of mind, further appreciation seems to be on the cards.

IBP -- Last Close: 216.80 | Support: 203, 192 | Resistance: 227, 240

Trading Range -- The scrip opened at 212.25, moved up to an intra-day high of 217.00, declined to an intra-day low of 208.00 and closed at 216.80.

Review/Outlook -- The scrip has not only closed above the 10 and 155 day averages but has given an upward breakout from its trading range - a further upside seems like a distinct possibility.

Stock Track

Scrip Support Last Close Resistance Trend ACC 127, 115 132.10 135, 143 Tu HLL 127, 111 137.55 141, 155 Sd INFOSYS 2405, 1897 2936.60 2985, 3468 Sd ITC 665, 592 679.10 729, 802 Tu MTNL 85, 63 95.00 95, 103 Tu RIL 269, 242 270.45 302, 324 Sd SATYAM 149, 113 166.05 173, 199 Tu SBI 276, 258 282.95 293, 314 Sd TELCO 148, 135 153.40 168,186 Sd TISCO 131, 125 135.45 139, 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