On Friday the Sensex gained 20 points. The market recovered quite well after a dip in the opening hours which indicates that a note of optimism continues to prevail in the market. The market opened with the Sensex at 3802.01, 18 points lower than the previous close of 3820.87. After posting a low of 3785.95 (previous low 3802.50), the Sensex rose to post an-intra day high of 3840.72. It closed at 3840.40. Except for the initial dip, the Sensex kept looking up firmly.The market is now well segregated into bullish and bearish scrips. Bajaj Auto, BSES and Gujarat Ambuja are on a bearish note. Bajaj Auto appears to be putting up a fight. Even though it slipped to Rs 577.20, the slippage below Rs 580 seems distorted. There is a good chance of this scrip taking support at Rs 580. It could try to reverse the slip. BSES could be a target for short selling, but at Rs 195.60 it has the potential to bounce it off. If that fails, the bears may drive it down to Rs 183.
Colgate, Glaxo and Telco are bullish. Colgateand Glaxo seems headed for another 30 per cent gain. BHEL ,too, is trying to join this pair. HLL has no charm in trading and volumes have wound down. HPCL could prove to be the black horse, rising another Rs 20. With high volatility ,you can catch it low. ICICI has turned weak, but could resist at Rs 85. Both in ICICI and IDBI, profit booking on Monday would be a sensible option. But take advantage of any price rise. Hold on to Indian Hotels, as volumes are increasing.
It is time to book profit at IPCL and short sell at Rs 69. Stop loss at Rs 72. Enter ITC at Rs 722, for a potential gain of Rs 15-20. Stop loss at Rs 710. At M&M look for another opportunity to enter closer to Rs 250. Buy into Reliance between Rs 173-175 for short trades. Book profit at SAIL, but at higher levels. Telco could be heading towards Rs 300. Tisco continues to attract volumes. Traders might be setting their next sight at Rs 161. Ashok Leyland has been seeing rising volumes since Rs 35. You may use the NSE week- end decline to buy.Bank of Baroda is finding it difficult to gain further. You might as well get out here. At BPCL take advantage of the fluctuation to enter at Rs 340.
The Sensex is still above the 7-day exponential moving average. It has not signalled a sell. But the gains are coming in only on selected scrips. It is quite clear, that many are not bothered about this slow rise but are buying into select scrips which could hopefully give up to 30 per cent gain.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
