Trading strategy for May 16

The market has forged ahead with the rally now spreading across sectors. The second rung stocks are in the midst of a brilliant bull run, movers of the day were the capital goods, consumer durables, PSUs, textiles and pharma while volume has improved -- the undertone was buoyant.

Sensex -- Last Close: 3012.97 | Support: 3007, 2922 | Resistance: 3110, 3210

Trading Range -- The Sensex opened at 2996.67, moved up to an intra-day high of 3016.94, declined to an intra-day low of 2993.39 and closed at 3012.97.

Review/Outlook -- The Sensex has ended in positive territory for the 3rd consecutive trading session and seems set to repeat this phenomenon today also. Intra-day resistance comes in at the 3029 level.

Aurobindo Pharma -- Last Close: 270.30 | Support: 260, 245 | Resistance: 280, 297

Trading Range -- The scrip opened at 262.00, moved up to an intra-day high of 272.50, declined to an intra-day low of 260.00 and closed at 270.30.

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

E Merck -- Last Close: 236.75 | Support: 230, 220 | Resistance: 240, 249

Trading Range -- The scrip opened at 234.90, moved up to an intra-day high of 239.95, declined to an intra-day low of 232.25 and closed at 236.75.

Review/Outlook -- The scrip has closed above a supply line and with the mechanical indicators supporting the move, a further upside cannot be ruled out.

HPCL -- Last Close: 302.50 | Support: 302, 290 | Resistance: 310, 322

Trading Range -- The scrip opened at 296.00, moved up to an intra-day high of 305.25, declined to an intra-day low of 296.00 and closed at 302.50.

Review/Outlook -- The scrip has given an upward breakout from a minor consolidation pattern with the oscillators in a positive frame of mind, further appreciation seems to be on the cards.

Polaris Soft -- Last Close: 136.70 | Support: 132, 117 | Resistance: 145, 163

Trading Range -- The scrip opened at 135.00, moved up to an intra-day high of 138.15, declined to an intra-day low of 135.00 and closed at 136.70.

Review/Outlook -- The scrip has gained ground after overcoming a supply line and the 55 day average simultaneously and with the oscillators still supporting the move, a further upside cannot be ruled out.