The market has turned volatile. Though the prices slipped mid-session, there was recovery towards the later part of the day. The performance has been mixed in different scrips.You will have to check out for a firm trend despite the Tuesday profit booking. This is difficult. Some suggestions follow. The market opened high with the Sensex at 3775.54, some 63 points above the previous close.
It rose to a high of 3810.21 and closed at 3807.21. The day's low was at 3760.66. The market has broken through the barrier of 3783. Its next target would be 4055. However, in order to facilitate this, the Sensex should close above 3800 on Tuesday.
Tuesday being the closing of the NSE week, today's profit taking pattern could get even more accentuated. But it would be difficult to apply a uniform thumbrule to all scrips in terms of the underlying intra-day momentum.
BSES may well be able to hold on to Rs 213 as its base. Colgate is weak and could slip to Rs 263. You should put in on watch list because even there itis in a grey zone. It has the risk of slipping lower than this. Gujarat Ambuja can see resistance on the downside between 274.60 and 274.30, which could be a good entry point. HDFC Bank could bounce back at Rs 77.50.
HLL will have a support between Rs 1575-1570. At ICICI, entry for intra day at Rs 88.40 could prove worthwhile with a stop loss at Rs 88.20. At ITC, short selling target could be Rs 729, with a stop loss cover at Rs 730.50. At Larsen and Toubro, short sell at Rs 233.45 with a stop loss cover at Rs 233.45. You could also short sell more surely at Rs 232.50. Buy MTNL if it crosses Rs 263. Stop loss should be at Rs 262.25. Short sell Ponds India at close to Rs 1195.
Reliance Industries has broken the barrier at Rs 175.28. The possibility of this scrip reaching Rs 200 in a bull run cannot be ruled out. Volume has accompanied rise. You could still consider an entry here. Try an entry at Rs 172!. Book profit on SBI and SAIL.
Pick up Tisco at Rs 245, if it slips due to profit booking. Tata Powermay get support at Rs 112.50. Book profit on Bajaj Auto, preferably closer to Rs 618.
