This article was first published 22 years ago

Trading strategy for May 23

May 22, 2003 19:44 IST

The market has come under some pressure and has remained subdued, but this has not affected the second rung stocks which have gone from strength to strength.

Textiles, capital goods and PSUs continued to rule the roost, while infotech was again a weak spot. Volume was normal and the undertone was sombre.

Sensex -- Last Close -- 3040.79 | Support -- 3007, 2922 | Resistance -- 3110, 3210

Trading Range -- The Sensex opened at 3055.20, moved up to an intra-day high of 3067.12, declined to an intra-day low of 3032.91 and closed at 3040.79.

Review/Outlook -- The Sensex has declined to close in negative territory but has support at the 3035 level in the form of the 10 day average. A range bound movement cannot be ruled out.

BEML -- Last Close -- 082.30 | Support -- 076, 067 |   Resistance -- 084, 093

Trading Range -- The scrip opened at 080.70, moved up to an intra-day high of 083.00, declined to an intra-day low of 080.00 and closed at 082.30.

Review/Outlook -- The scrip has shown short-term strength by posting a 2-½ month high and with the oscillators looking positive, a further upside seems possible.

Hindalco -- Last Close -- 685.00 | Support -- 675, 650 |   Resistance -- 690, 741

Trading Range -- The scrip opened at 662.00, moved up to an intra-day high of 687.65, declined to an intra-day low of 653.00 and closed at 685.00.

Review/Outlook -- The scrip has given an upward "bar" reversal (bullish intra-day pattern) and with oscillators looking positive - a further upside cannot be ruled out.

Satyam -- Last Close -- 160.10 | Support -- 149, 113 |   Resistance -- 173, 199

Trading Range -- The scrip opened at 165.20, moved up to an intra-day high of 165.20, declined to an intra-day low of 159.10 and closed at 160.10.

Review/Outlook -- The scrip has closed below the 10-day average and a demand line simultaneously and with the oscillators in a similar vein (read as sell mode), further depreciation seems to be on the cards.

Supreme Industries -- Last Close -- 111.90 | Support -- 110, 096 | Resistance -- 126, 144

Trading Range -- The scrip opened at 104.00, moved up to an intra-day high of 112.40, declined to an intra-day low of 102.00 and closed at 111.90.

Review/Outlook -- The scrip has reflected strength by giving an upward breakout from a consolidation phase - a further upside cannot be ruled out.

Stock Track
Scrip Support Last Close Resistance Trend
ACC 135, 127 135.35 143, 148 Tu
HLL 141, 127 146.90 155, 163 Tu
INFOSYS 2405, 1897 2689.05 2985, 3468 Td
ITC 665, 592 693.55 729, 802 Tu
MTNL 85, 63 93.05 95, 103 Td
RIL 269, 242 274.05 302, 324 Tu
SATYAM 149, 113 160.10 173, 199 Td
SBI 314, 293 328.15 333, 358 Up
TELCO 148, 135 166.20 168, 186 Tu
TISCO 139, 131 142.95 150, 166 Up
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.

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Sebi Disclosure: The author has no positions in the stocks mentioned above.

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