Trading strategy for May 9

The market had been under pressure virtually from open to close and the weakness was prevalent across quite a few sectors. The capital goods and PSU sector held firm while pharma stocks took a beating. Scrip specific movements were witnessed, volume was better while the undertone was weak.

Sensex -- Last Close: 2961.60 | Support: 2922, 2826 | Resistance: 3007, 3110

Trading Range -- The Sensex opened at 2980.25, moved up to an intra-day high of 2989.23, declined to an intra-day low of 2953.42 and closed at 2961.60.

Review/Outlook -- The Sensex has reflected weakness only to end in negative territory. Despite intra-day support from the 2950 level a further intra-day decline cannot be ruled out.

Moser Baer -- Last Close: 287.40 | Support: 276, 253 | Resistance: 295, 309

Trading Range -- The scrip opened at 279.30, moved up to an intra-day high of 289.50, declined to an intra-day low of 274.00 and closed at 287.40.

Review/Outlook -- The scrip has given an upward 'bar' reversal (bearish intra-day pattern) and with the oscillators reflecting strength, a further upside seems possible.

Dr Reddy's Lab -- Last Close: 849.35 | Support: 849, 815 | Resistance: 880, 900

Trading Range -- The scrip opened at 880.00, moved up to an intra-day high of 880.00, declined to an intra-day low of 839.90 and closed at 849.35.

Review/Outlook -- The scrip has reflected weakness by giving a downward 'bar' reversal (bearish intra-day pattern), while a further downside cannot be ruled out.

Trent -- Last Close: 160.55 | Support: 160, 150 | Resistance: 168, 179

Trading Range -- The scrip opened at 156.15, moved up to an intra-day high of 161.25, declined to an intra-day low of 156.15 and closed at 160.55.

Review/Outlook -- The scrip has given an upward 'bar' reversal (bullish intra-day pattern) after taking support on the 55 day average - further appreciation seems to be on the cards.

Wipro -- Last Close: 902.70 | Support: 896, 841 | Resistance: 903, 935

Trading Range -- The scrip opened at 925.00, moved up to an intra-day high of 927.70, declined to an intra-day low of 901.25 and closed at 902.70.

Review/Outlook -- The scrip has reflected weakness by being unable to sustain at higher levels after facing resistance from the 10 day average while a further downside seems possible.