This week, the Sensex managed to cross the 3,030 level and touched a peak of 3119 points. This move, without any doubt, was a bullish signal. The fall from 3119 to 3060 level where the Sensex closed on Friday, should not bother much as it was of a corrective nature. The market had showed a rally of more than 200 points and a correction was imminent. Despite this fall, the sensex managed to clock a gain of 97 points over the of previous close.The short-term outlook for the Sensex is bright. It has strong support at 3030 level and it will be broken only in extreme case. On the upper side, the sensex is all set to cross the 3119 points in the coming days and is likely to head for the 3260 level. Indicators such as RSI and MACD have also pointing for a rally.
Except the heaviest of the lot, Hindustan Lever, the position of most of the pivotals is bullish and will help the sensex to cross its immediate object of 3119 points.
Hindustan Lever is not completely bearish but for a good upmove, the stock needs tocross Rs 1,720 level. ITC is in good health which was attained by a move above Rs 740 this week. Three attempts to cross this level had failed in the past. If ITC crosses Rs 775, the next stop is expected to be at Rs 830. ITC have all the potential to trigger a rally.
Other two counters, Reliance and State Bank which have not shown major fireworks in the recent past, are expected to act in bullish manner in the coming days.
For Reliance, the short term resistance is placed at Rs 127. State Bank counter may also face selling at around Rs 169 but action would start once it crosses this level. Bhel is also on a good wicket and is expected to move to Rs 276.
MTNL and Hindustan Petroleum appear weak and may not show major rally. However, in the case of Mahanagar Telephone Nigam Ltd (MTNL), if it manages to cross Rs 189, then the sharp rally is expected. Overall, the short term outlook appears positive and demands positive positions.
Other counters which are expected to move upward are: Atlas Copco,Colgate Palmolive, L&T, LIC Housing Finance, M&M, Raymond, Nicholas Piramal, Siemens, SKF Bearings.
Among the Tata counters, Tisco is in good health and is expected to rally further. Telco requires to take some rest before an upward journey. Software stocks have also displayed a bullish trend this week and is expected to continue the show for some more time. Satyam Computers is expected to attain new high. Pentafour and Silverline also look good. Overall, take long positions, the first quarter of 1999 is expected to be good.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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