Trading strategy for May 22

The market hasn't been able to sustain itself at higher levels and there seemed to be selective profit taking. The old economy fared reasonably well and IT was a distinct weak spot while volume was normal and the undertone was confused.

Sensex -- Last Close: 3057.09 | Support: 3007, 2922 | Resistance: 3110, 3210

Trading Range -- The Sensex opened at 3068.12, moved up to an intra-day high of 3092.38, declined to an intra-day low of 3054.47 and closed at 3057.09.

Review/Outlook -- The Sensex has given a downward "key" reversal (bearish intra-day pattern) indicating the possibility of a further downside today below the 3054 level. The Sensex is giving too many false moves so it would be prudent to remain scrip specific.

Bata -- Last Close: 33.00 | Support: 33, 30 | Resistance: 39, 47

Trading Range -- The scrip opened at 30.80, moved up to an intra-day high of 33.25, declined to an intra-day low of 30.80 and closed at 33.00.

Review/Outlook -- The scrip has shown short term strength by posting a 3 ½ month high and with the oscillators looking positive, a further upside seems possible.

Hindalco -- Last Close: 662.50 | Support: 650, 634 | Resistance: 675, 690

Trading Range -- The scrip opened at 654.00, moved up to an intra-day high of 666.00, declined to an intra-day low of 654.00 and closed at 662.50.

Review/Outlook -- The scrip has recovered smartly from its intra-day low and has closed above a supply line on the intra-day charts - a further upside cannot be ruled out.

MTNL -- Last Close: 92.80 | Support: 85, 63 | Resistance: 95, 103

Trading Range -- The scrip opened at 93.10, moved up to an intra-day high of 94.70, declined to an intra-day low of 92.65 and closed at 92.80.

Review/Outlook -- The scrip has posted a 13 trading session low and with the oscillators in a similar vein (read as sell mode), further depreciation seems to be on the cards.

Wipro -- Last Close: 857.90 | Support: 841, 815 | Resistance: 896, 935

Trading Range -- The scrip opened at 915.00, moved up to an intra-day high of 915.00, declined to an intra-day low of 853.25 and closed at 857.90.

Review/Outlook -- The scrip has reflected weakness by closing below the 10 day average and a demand line simultaneously -- a further downside cannot be ruled out.