In fact, few stocks also managed to hit the 16 per cent upper circuit, which is very impressive if one were to consider the weak sentiment.

The latest buying suggests that there is a change in market perception for ICE stocks, and if that is true, the medium-term outlook will take a positive turn.

Few may dismiss the current move as a corrective rally which means prices will slide again and should break their latest bottoms. It is true that correction does occur but the latest rally cannot be considered of a corrective nature. For one, it has not been accompanied by any news or for that matter any significant move on Nasdaq, which has been showing a steady uptrend in the last few days. The speed at which prices have gone up is also very impressive and reflects a bullish undertone. There is one more factor which favours a positive outlook. The trading volumes are significantly higher in the latest rally. For instance, Wipro used to attract an average volume of around 4 lakh shares in the second quarter of last year and is now witnessing trading volume of more than 10 lakh shares. Dig Equipment, NIIT, Satyam Comp and Infosys are other counters where volumes have shown a smart jump. While the latest rally is a welcome relief, should investors go ahead and do the purchasing? The answer is yes but one canafford to wait for a downward correction. Following are the stocks, which appear better of the lot.

Wipro This is one of the few stocks which has not broken its medium-term base in recent panic. For those who hold delivery, partial exit can be made only below Rs 2,400 whereas entire holding should be liquidated below Rs 2,100. As on the positive side, the uptrend will gather momentum above Rs 3,100.

Digital Equipment It has managed to move above its medium-term resistance of Rs 600 and the next major hurdle for the counter exists only at Rs 830. The level of Rs 420 should be used as stop-loss for delivery positions.

Satyam Computer
This counter has also managed to move above its medium-term hurdle of Rs 406. The next major resistance for the counter is at Rs 620. A complete exit should be made below Rs 295.

While the ICE stocks have done better, few stocks from old economy may also appear positive.

Reliance The stock is approaching new highs. For those who hold delivery, the level of Rs 320 can be used as stop-loss. The position will further improve above Rs 390.

HDFC Bank For the last one year, the stock has remained in a range of Rs 200 - Rs 280. With the latest move up to Rs 254, the stock has crossed its first hurdle and the uptrend is likely to gather momentum above Rs 285. The level of Rs 220 should be used as stop-loss for long positions.

Bhel The stock is above its medium-term resistance levels and appears attractive for long positions. The uptrend is likely to accelerate above Rs 174 and the level of Rs 135 should be used as stop-loss for long positions.

Deepak Singh Tanwar