With only three weeks to go for the budget all eyes would be definitely glued on what the Finance Minister has in store. If one were to go by the statements appearing in the press in last couple of days, we are going to see some tough sanctions imposed on the tax players. The Indian tax payer has been burdened with an unreasonable amount of taxes. Any attempt to increase this burden will lead to social unrest.

The movements of the index during the week was quite as per our expectations. Last week, it was expected that the index could see a quickrally, in one or more sessions, to around 4150 points before a decline starts. During the week the index made a high of 4156 points in Tuesday's trading before a decline started. The Tuesday's session was a `Doji'. What followed in the next two sessions was a steady decline. The index is currently is poised just above its `window' at around the level of 4000 points. If the downtrend is to continue the index has to close below this level.

Last week it was mentioned that the index could decline to around 3850.We are reconsidering this opinion in the light of the price pattern that has been formed during the week. The Friday's trading was a `star'. This may act as a reversal pattern. Under the circumstances we are unable to state with a certain degree of confidence how the market will move in the next week. A break below the level of 4000 and the market will come to the support level of 3950 points. A break below this level and the index may decline to 3850 points. Alternatively if the index managed to riseabove the level of 4156 points then the market may stage a rally. The indicators are near about their equilibrium levels and nothing can be inferred from them. Traders may be advised to reduce their trade size and await clear clues from the market before taking up heavy commitments.

Bata (India): Bullish

This has been one our favourite stocks and we have been tracking it very closely since it began its up move since December 1997. This stock has been moving in a range of Rs 170-130 since August 1998. Currently the stock is poised just above its rising trendline and it appears that the stock is on the verge of staging a breakout beyond the level of Rs 190. The level of Rs 190 is a very strong resistance level and once the price moves beyond this level the price of this stock could zoom up. One may buy at current levels. Keep a stop loss below Rs 135.

Videocon Appliances: May rise

The breakout beyond the falling trendline has been on an excellent in volumes. This itself is a major sign ofreversal. The 12- week ROC shows a very strong momentum. The stock price does show a potential to hit a targeted level of Rs 70 in the medium term. One may consider buying this stock at current levels. Keep a stop loss below Rs 20.

Snowcem: Good potential

This stock has broken out from its falling trendline. The breakout has been with a reasonable increase in volumes. The stock faces resistance at Rs 71 and once this level is surpassed the stock price could rise up to Rs 90. One may consider buying this stock at current levels. Keep a stop loss below Rs 56.

ACC: Sell short

Thursday's trading session in this stock formed the bearish `dark cloud cover pattern. The stock has strong support at 1650 points. Traders must wait for the stock to break below Rs 1650 before selling short. Keep a stop loss above Rs 1680.

Sterlite: Buy long

This stock is poised at just above its support level of Rs 300 and its rising trendline. One may buy at current levels. Keep a stop loss level belowRs 298.