Erosion in prices likely to continue
K Seshadri
The Sensex lost 29 points on Friday as it continued its southwards journey. The index found support at 3340 (yesterday this column had projected a support at 3344), and closed higher at 3351.21. The market saw losses in most counters, though the phenomenon was one of bears nibbling away at values. While the close of the BSE week could have helped in restraining the damage, one should now wait to see if the bears will try to tear off some more flesh next week.Except ACC, ITC, BSES and SBI, most of the other Sensex scrip have lost today. ACC gained 2.83 per cent with rising volumes. While the technical indicators including the long term indicator has signalled a buy, the scrip is poised midway between overbought and oversold position. SBI has posted a gain of 0.72 per cent; the technical indicators are positive for holding one's purchases. ITC has bounced back at Rs 581.50, as was forecast in this column and moved up to Rs 587.50. At Rs 158, BSES is trying to stabilise some Rs 3 higher than its more stablebase. BHEL could continue to weaken. Colgate has posted marginal loss. GE Shipping has touched its resistance and could find support at today's price. Glaxo is heading towards its support level of Rs 320. Gujarat Ambuja and HLL are eroding slowly. HPCL is dipping badly and one should wait to see how far it goes down. ICICI closed at Rs 79.50. Reader's can refer to the recommendation given yesterday, where it was recommended to be sold above Rs 80. The market has absorbed the declaration of the results today. With results reasonably good, one should moderate perception here and do a combined reading of the technical and fundamental strengths. Reliance could take support at Rs 151.50 and bounce back. IPCL, Larsen & Toubro, Indian Hotel, IDBI, Mahindra & Mahindra and MTNL, all are giving away a bit of flesh. While the daily erosion is small, what should concern the investor is that these daily dents could continue. They are yet to come down to a level, where buying interest will emerge on technical
grounds. SAIL is stabilising and Tata Chemicals has been knocking at its historic bottom levels.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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