Trading strategy for April 29

A belated recovery on a seven-month low volume on the Bombay Stock Exchange would suggest a cautious approach. IT remained lacklustre while select pharmaceutical stocks like Cipla, Dr  Reddy and Ranbaxy retreated with alacrity – the undertone remains tentative.

Sensex -- Last Close: 2936.71 | Support: 2922, 2826 | Resistance: 3007, 3110

Trading Range -  The Sensex opened at 2909.42, moved up to an intra-day high of 2942.45, declined to an intra-day low of 2904.44 and closed at 2936.71.

Review/Outlook -  The Sensex has recovered after posting another low to form what is known as an upward "key" reversal (a bullish intra-day signal). Further progress cannot be ruled out but any such progress needs to be viewed with trepidation for the time being.

ACC -- Last Close:  128.55 | Support: 127, 103 | Resistance: 135, 143

Trading Range -  The scrip opened at 129.85, moved up to an intra-day high of 129.85, declined to an intra-day low of 126.70 and closed at 128.55.

Review/Outlook -  The scrip has recovered smartly from its intra-day lows to end in positive territory, heightening hopes for an intra-day upside on Monday.  

ITC -- Last Close: 680.40 | Support: 665, 592 | Resistance: 729, 802

Trading Range -  The scrip opened at 670.00, moved up to an intra-day high of 681.50, declined to an intra-day low of 666.30 and closed at 680.40.

Review/Outlook -  The scrip has recovered from the lower boundary of its trading range, with the short-term oscillators in favour of an upside - further progress seems possible.

BPL -- Last Close: 25.50 | Support: 24, 18 | Resistance: 28, 32

Trading Range - The scrip opened at 24.00, moved up to an intra-day high of 25.50, declined to an intra-day low of 24.00 and closed at 25.50.

Review/Outlook -  The scrip was highly oversold and this situation has resulted in a recovery which can be expected to continue for a couple of trading sessions more.  

Oriental Bank -- Last Close:  82.85 | Support: 74, 67 | Resistance: 83, 91

Trading Range -  The scrip opened at 75.40, moved up to an intra-day high of 84.50, declined to an intra-day low of 75.15 and closed at 82.85.

Review/Outlook -  The scrip has posted a 5 ½ year high after staging a sharp recovery yesterday and a further upside seems like a distinct possibility.