The Sensex gained 69 points to close at 3785.23. But the picture essayed in this column on March 13 has not yet changed. Sensex continues to move in the rectangle between 3655 and 3810 mentioned earlier.The market opened with the Sensex at 3780.89, which was a clear jump of 64 points over the previous close. It posted a high of 3832. Readers would recall that the high posted earlier on March 10 was at 3830.97. The low for the day was at 3780.89. The market closed with the Sensex at 3785.23. Even though the Sensex has made a thrust above the 3810 line, the fact that it has closed lower goes to show that the Sensex is yet to make a break-out. The break-out could well happen anytime now. A strong indication of this breakout would be the Sensex taking support at 3814 on Tuesday. Either a support or closing.
Tuesday could see profit taking, despite that we are on the threshold of a possible upside break out. However, this break out could prove to be weak as the index is riding on the back of SAIL.
Somedetailed recommendations follow. ACC has seen more volumes. It could see a barrier at Rs 1552. Entries could be made at Rs 1390. Keep a stop loss Rs at 1312. Bajaj Auto can see a resistance at Rs 620. Entries suggested only at Rs 572 to cover the risk in this price area. At BHEL I suggest profit booking at Rs 343. BSES continues to move in a tricky area; it has not tested Rs 200 as suggested in this column on March 13. On the other hand it is not too bullish either. Rs 249 is the entry suggested for Colgate.Target entry in Glaxo at Rs 325-330 region. Gujarat Ambuja has moved up surprisingly. Refer to my write up earlier. Profit booking would be advisable for NSE traders. Continue to sell HLL as recommended earlier, closer to Rs 1600. Rs 433 is the suggested entry level into HPCL. As ICICI has failed to add up strength, one should book profit here. But not weak enough for short selling, unless close to Rs 93. Book profit on IDBI. Hold on to Indian Hotel, and book profit on IPCL.
At ITC book profit close toRs 729. At Larsen & Toubro, profit booking is fine, but short selling could be risky. Hold and buy M&M closer to Rs 265. MTNL has indeed turned back as predicted and could move up to Rs 265. Never the less respect the NSE week closing and book your profits appropriately. At Ranbaxy book profit above Rs 708. Reliance has moved up strongly. New entries suggested at Rs 169-172 region. Short sellers at SBI could square at Rs 274.70. Covering stop loss could be at Rs 284. SAIL could see profit booking, but it has the potential technically to move up to Rs 13.50. Book profits and re-enter depending upon the market movement. At Tata Power book profit at Rs 120 and re-enter lower. Enter Tisco at Rs 136.50.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
