Trading strategy for May 8

The market hasn't been able to sustain itself at higher levels while it was another day with intriguing crosscurrents. Select IT stocks held firm. Pharma and bank stocks (second rung) beat a hasty retreat while the PSU sector continued its upward march. Volume was at a low ebb while the undertone seemed subdued.

Sensex -- Last Close: 2980.74 | Support: 2922, 2826 | Resistance: 3007, 3110

Trading Range -- The Sensex opened at 2988.18, moved up to an intra-day high of 3003.00, declined to an intra-day low of 2978.54 and closed at 2980.74.

Review/Outlook -- The Sensex has found the psychologically important level of 3000, a tough nut to crack and has given a downward 'key' reversal (a bearish intra-day pattern) while an intra-day decline below the 2978 level cannot be rued out.

Crompton Greaves -- Last Close:58.55 | Support: 56.40, 49.60 | Resistance: 63.50, 74

Trading Range -- The scrip opened at 61.25, moved up to an intra-day high of 61.50, declined to an intra-day low of 58.30 and closed at 58.55.

Review/Outlook -- The scrip has closed below its short term support level and with the oscillators reflecting weakness, a further downside seems possible.

ITC -- Last Close: 673.80 | Support: 665, 656 | Resistance: 687, 710

Trading Range -- The scrip opened at 685.00, moved up to an intra-day high of 688.20, declined to an intra-day low of 671.05 and closed at 673.80.

Review/Outlook -- The scrip has given a downward 'bar' reversal (bearish intra-day pattern) on higher volume while a further downside cannot be ruled out.

Kesoram -- Last Close: 28.75 | Support: 25.40, 21.50 | Resistance: 30, 36

Trading Range -- The scrip opened at 28.25, moved up to an intra-day high of 28.85, declined to an intra-day low of 28.05 and closed at 28.75.

Review/Outlook -- The scrip has given an upward 'key' reversal (bullish intra-day pattern) and with the oscillators turning positive, further appreciation seems to be on the cards.

IBP -- Last Close: 222.25 | Support: 203, 192 | Resistance: 227, 240

Trading Range -- The scrip opened at 218.00, moved up to an intra-day high of 223.50, declined to an intra-day low of 218.00 and closed at 222.25.

Review/Outlook -- The scrip is in a short term uptrend and looks to have continued its upmove after being range bound a day before - further upside seems possible.