Trading strategy for May 26

The market has remained mixed with the key indices being relatively subdued but this hasn't stopped the second rung stocks' party from continuing.

The PSUs are in the midst of a phenomenal bull run, capital goods are holding firm, banks continue to outperform while IT continues to underperform. 

Volume was better and the undertone was bullish.

Sensex -- Last Close: 3049.84 | Support: 3007, 2922 | Resistance: 3110, 3210

Trading Range -- The Sensex opened at 3041.63, moved up to an intra-day high of 3060.48, declined to an intra-day low of 3036.42 and closed at 3049.84.

Review/Outlook -- The Sensex has behaved on expected lines and has recovered to close in positive territory. An intra-day upside above the 3061 levels seems like a distinct possibility.

Bajaj Auto -- Last Close: 484.60 | Support: 472, 433 | Resistance: 504, 545

Trading Range -- The scrip opened at 479.20, moved up to an intra-day high of 495.95, declined to an intra-day low of 470.10 and closed at 484.60.

Review/Outlook -- The scrip has given an upward bar reversal (bullish intra-day pattern) and with the oscillators looking positive, a further upside seems possible.

HLL -- Last Close: 150.35 | Support: 141, 127 | Resistance: 155, 163

Trading Range -- The scrip opened at 147.55, moved up to an intra-day high of 150.75, declined to an intra-day low of 146.50 and closed at 150.35.

Review/Outlook -- The scrip has recovered smartly from its intra-day lows to close above the 55 day average while a further upside cannot be ruled out.

SBI -- Last Close: 341.90 | Support: 333, 314 | Resistance: 358, 380

Trading Range -- The scrip opened at 332.00, moved up to an intra-day high of 343.70, declined to an intra-day low of 332.00 and closed at 341.90.

Review/Outlook -- The scrip has reflected significant strength by moving up with a gap and with the oscillators in a similar vein (read as buy mode), further appreciation seems to be on the cards.

Telco -- Last Close: 172.05 | Support: 168, 148 | Resistance: 186, 199

Trading Range -- The scrip opened at 168.00, moved up to an intra-day high of 173.00, declined to an intra-day low of 165.20 and closed at 172.05.

Review/Outlook -- The scrip has reflected strength by giving an upward breakout from a 26 week consolidation phase -- a further upside seems to be on the cards.

Stock Track

Scrip Support Last Close Resistance Trend ACC 135, 127 135.80 143, 148 Tu HLL 141, 127 150.35 155, 163 Tu INFOSYS 2405, 1897 2609.90 2985, 3468 Dt ITC 665, 592 677.40 729, 802 Sd MTNL 85, 63 93.40 95, 103 Td RIL 269, 242 269.80 302, 324 Sd SATYAM 149, 113 162.40 173, 199 Td SBI 333, 314 341.90 358, 380 Up TELCO 168, 148 172.05 186, 199 Up TISCO 139, 131 145.30 150, 166 Up GLOSSARY : CMP - Current Market Price, MACD - Moving Average Convergence Divergence, RMI - Relative Momentum Index, RSI - Relative Strength Index, ROC - Rate of Change, EMA - Exponential Moving Average, CMP - Current Market Price, Cls - Closing Price, Support - Level where buying can be expected, Resistance - Level where selling can be expected, Tu - Turning Upwards, Td - Turning Downwards, Sd - Sideways, Up - Uptrend, Dt -Downtrend. DISCLAIMER : While efforts have been made to ensure the accuracy of the information provided in this content, the authors shall not be held responsible for any loss, harm or injury arising in any manner whatsoever, including those arising directly, indirectly, consequentially or otherwise and whether financial, mental or otherwise, caused to any person whatsoever who accesses or uses or is supplied with the content (consisting of articles, information, analyses, etc.) provided at this site or who otherwise relies on such content. Readers are advised to cross verify the information and to also seek professional and expert advice before taking any decision based on the content provided above or acting on any recommendations made herein. The information or opinions provided herein are not a substitute for professional advice. Sebi Disclosure: The author has no positions in the stocks mentioned above