Trading strategy for May 27

The market has forged ahead but with a difference; for a change, mainline stocks like HLL and Reliance led a bright day for the bourses.

The rally has spread across sectors with the most obvious omission being the IT sector, which was again a weak spot.

Volume dipped a tad, while the undertone was firm.

Sensex -- Last Close -- 3096.69 | Support -- 3007, 2922 | Resistance -- 3110, 3210

Trading Range -- The Sensex opened at 3051.30, moved up to an intra-day high of 3101.75, declined to an intra-day low of 3050.16 and closed at 3096.69.

Review/Outlook -- The Sensex has forged ahead on expected lines while it seems poised to perform a repeat encore today. It has closed displayed its bullish intentions by closing above the 55 day average yesterday.

Bajaj Auto -- Last Close -- 190.70 | Support -- 472, 433 | Resistance -- 504, 545

Trading Range -- The scrip opened at 485.00, moved up to an intra-day high of 495.45, declined to an intra-day low of 485.00 and closed at 490.70.

Review/Outlook -- The scrip has reflected short-term strength by closing above the 10 and 55 day averages - a further upside seems possible.

HLL -- Last Close -- 153.20 | Support -- 141, 127 | Resistance -- 155, 163

Trading Range -- The scrip opened at 151.00, moved up to an intra-day high of 153.85, declined to an intra-day low of 151.85 and closed at 153.20.

Review/Outlook -- The scrip has given an upward breakout from a consolidation pattern on the daily chart while a further upside cannot be ruled out.

BHEL -- Last Close -- 263.40 | Support -- 247, 234 | Resistance -- 268, 282

Trading Range -- The scrip opened at 259.90, moved up to an intra-day high of 265.50, declined to an intra-day low of 256.00 and closed at 263.40.

Review/Outlook -- The scrip has signalled a continuation of its uptrend by moving out of a consolidation phase while further appreciation seems to be on the cards.

L & T -- Last Close – 216.35 | Support – 207, 190  | Resistance – 221, 231

Trading Range – The scrip opened at 210.00, moved up to an intra-day high of 217.00, declined to an intra-day low of 209.20 and closed at 216.35.

Review/Outlook – The scrip has reflected strength by posting a 5 month high and with the oscillators looking positive, a further upside seems to be on the cards.