Trading strategy for May 29

The market has recovered with a bang right from open to close; while most of the sectors have recouped their losses.

Tech stocks also witnessed gains riding on the overnight NASDAQ fervour while volume was a distinct improvement and the undertone was firm.

Sensex -- Last Close: 3130.46 | Support: 3110, 3007 | Resistance: 3210, 3320

Trading Range -- The Sensex opened at 3093.72, moved up to an intra-day high of 3133.17, declined to an intra-day low of 3086.15 and closed at 3130.46.

Review/Outlook -- The Sensex has shown a splendid recovery (read as rally) to end sharply in positive territory. The strong closing would seem to suggest an intra-day upside above the 3134 levels.

Bajaj Auto -- Last Close: 499.35 | Support: 472, 433 | Resistance: 504, 545

Trading Range -- The scrip opened at 499.00, moved up to an intra-day high of 502.00, declined to an intra-day low of 492.00 and closed at 499.35.

Review/Outlook -- The scrip has continued it steady ascent despite the market upheaval and with the oscillators looking firm, a further upside seems possible.

Dr Reddy's Lab -- Last Close: 832.10 | Support: 815, 795 | Resistance: 849, 880

Trading Range -- The scrip opened at 827.00, moved up to an intra-day high of 834.00, declined to an intra-day low of 817.10 and closed at 832.10.

Review/Outlook -- The scrip has not only staged a smart intra-day recovery but has also overcome a supply line while a further upside cannot be ruled out.

HLL -- Last Close: 155.95 | Support: 155, 141 | Resistance: 163, 172

Trading Range -- The scrip opened at 154.00, moved up to an intra-day high of 156.30, declined to an intra-day low of 151.35 and closed at 155.95.

Review/Outlook -- The scrip has reflected short term strength by giving an upward "bar" reversal (bullish intra-day pattern) while further appreciation seems to be on the cards.

Jindal Steel -- Last Close: 413.40 | Support: 407, 390 | Resistance: 418, 430

Trading Range -- The scrip opened at 410.00, moved up to an intra-day high of 414.00, declined to an intra-day low of 407.00 and closed at 413.40.

Review/Outlook -- The scrip has posted a 3 month high and with the oscillators looking strong, a further upside seems to be on the cards.

Stock Track

Scrip Support Last Close Resistance Trend ACC 135, 127 140.50 143, 148 Up HLL 155, 141 155.95 163, 172 Up INFOSYS 2405, 1897 2744.50 2985, 3468 Dt ITC 665, 592 691.00 729, 802 Sd MTNL 85, 63 94.05 95, 103 Td RIL 269,242 288.40 302, 324 Up SATYAM 149, 113 166.15 173, 199 Td SBI 333, 314 346.40 358, 380 Up TELCO 155, 148 165.95 168,186 Sd TISCO 139, 131 146.60 150, 166 Sd 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