The market undertone appears to be weak. Traders will have a tough time deciding on which way the market should move for the new NSE week. There is some more fat to be shed, and maybe that will happen before the market tries to look northwards. ACC has resisted as expected. But, if there is no reversal of the market trend on Wednesday, it could move down to Rs 1,240.In reality, the cement major has been weathering a storm for a while, but if the bear wave persists, it could slide down to Rs 1,200, from which level it has a good chance of bouncing back. One could take a buy position at Arvind Mills now. You would still need a good market sentiment for your rewards, but the scrip could jump up any time to Rs 57.80 for starters. For Bajaj Auto, a strong support at Rs 491 has kept the scrip up. For BHEL, the short-term sell signal is on and the scrip could come down to Rs 275. At BSES, if Rs 166.40 does not hold it can go down to Rs 163. At Colgate, allow the scrip now to test the bottom of Rs 234. Thescrip's weakness could get accentuated if the market mood turns pensive as a whole. Allow GE Shipping to bounce back at Rs 40.50 before you enter the scrip. Get out of Glaxo at Rs 388 and wait to watch the trend. Stay put at Gujarat Ambuja Cement. At HLL, a short-term sell signal is on and the scrip could move down to Rs 1,364. At HPCL, even though the price is resisting a fall, the technical indication is that it would go down in the short term with Rs 405 being a good support point. The buy signal at Hindalco has strengthened a few ounces more and Rs 75.50 is where ICICI could find support. Right now, it makes sense to sell it preferably above Rs 78.20, for both short- and long-term investors. Should the market trend change on Wednesday, you can re-enter again at an appropriate level, which could be targeted close to Rs 75.50.
IDBI could find support at Rs 78.80; so the room for a downside is now limited. Indian Hotels is strong and trying to fight the overall market trend. For ITC, Rs 585 is proving tobe a strong toehold, but I think it will lose its grip; that is what the technical indicators tell me. However, during intra-day, strong hands could create misleading signals here. Larsen & Toubro could need some pushing before it can move up. You can afford to go slow here. Not only that the safety conscious could also square off their positions, until the market directions become clearer. State Bank has found support at Rs 238 as expected in this column yesterday. Tomorrow, the scrip will take the cue from the market as to which way it should turn. Telco is going the way I predicted.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
