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Trading Strategy for the week ending December 31, 1999

Sensex: This week is very crucial for sensex and traders can expect one side movement from fourth trading session onward. Last week after hitting a supply line of rising wedge it has fallen drastically. Index will have to cross 4917 level then only it will show its strength and there after it will face resistance at 4977 or expect a jump up to 5055 level. If it remains below 4890 level then expect a free fall to 4805 or 4715 is also possible. Don't remain short or long, above 5055 and below 4715 level in any sensex stock. Rise from a low of 4209 level looks 100 per cent manipulative or artificial only and the rise is due to Infosys because the scrip has doubled in 37 trading sessions from a low of Rs 6,590 to cross Rs 13,000 and still going strong. But, be cautious it looks that the scrip will be the main culprit for heavy fall in sensex, because it has formed a rising wedge in weekly charts and it indicates the scrip may tumble very heavily and traders can expect unfavourable news too.

Zee Tele: Technically one of the best stocks and at any price it should be considered as cheap but for investors only. Investors start accumulating this stock on very decline because it looks that it will double in coming three months itself. For this week consider Rs 926 as weekly support level. Crossover above Rs 962.50 level will take scrip up to Rs 1000 or Rs 1037. Have a close eye on Rs 1,045. Decisive crossover above this level will take the scrip up to Rs 1,200 in 48 hours only. The level of Rs 972 and Rs 935 are trend decider for Monday's trading, crossover or breaks will create panic buying or selling.

L&T: On Friday scrip had closed at very crucial point. Decisive crossover above Rs 473 level will create panic buying and scrip can easily flare up to Rs 505 or Rs 545. If it is able to close above Rs 483 level then expect upper freeze session. Weekly support exists at Rs 448. Buy this stock on every decline. Scrip had formed a multiple bottom and it is traded in upward channel. Below 448 it can slide to Rs 436 or Rs 420.

BSES & ITC: Both these stocks are 100 percent risk free buy and charts indicate that they will move in opposite direction of the market. BSES has given a positive divergence and a very powerful buy signal in mechanical indicators. Considering Rs 186 and Rs 177 as rock bottom support grab this stock. Decisive crossover above Rs 196 will create panic buying and the scrip can easily zoom up to Rs 209 or Rs 225 by month end. Take long positions in carry forward. Falling wedge in weekly chart indicates real fire work to start in ITC counter and indicators are also favouring bulls. Considering Rs 676 and Rs 666 as major support levels decide your startegy. If it remains above Rs 676 it can zoom up to Rs 722 or Rs 762. Don't remain short if it is able to close above Rs 752.

FDC Ltd. & J.B Chem: Real explosive counters and looking very hot technically no problem and fundamentals are incomparable. Expect upper freeze session in both these counters, traders and investors can expect 50 per cent return in coming days itself. Falling wedge in FDC in a weekly chart indicates that the scrip will cross its all time high. Crossover above Rs 425 with high volumes will take it up to Rs 490, minor hurdle exists at Rs 457. Weekly support exists at Rs 395. In the last six weeks heavy accumulation is going on in JB Chem and the scrip is ready to take off. Crossover above Rs 224 with high volumes will take the scrip up to Rs 254 or Rs 290 by this month end. Instead of trading in these counters, pick up delivery for unexpected return.

Fag Precision, NRB Bearing & Bimetal Bearing: All these stocks will double in coming three months. Out of the three stocks, Fag Precision is the best and will flare up very fast. Scrip may cross Rs 150 by next month itself buy on every decline. Heavy accumulation is going in NRB Bearing and box chart had also given a powerful buy signal. Crossover above 128 can take scrip up to Rs 152 or Rs 170 by this month end. Bimetal Bearing to explode very heavily, it is ready to start its third wave in weekly chart. Low floating stock but accumulation is going on since last five months. All three stocks are real gold mine, so grab them.

Jindal Strips, Bharat Elec and Heritage Food: All three mid cap stocks are ready to catch fire and scrips are in the firm grip of bulls only. From the current levels Jindal Strips and Heritage food can double in a time span of 30 trading sessions and Bharat Elec can cross Rs 200 very soon. To get unexpected return from stock market,grab these stocks and all three stocks are my hot favourite for the investment of first three months of the year 2000.Present rates of these stocks are Rs 140, Rs 80 and Rs 50 and check out the prices in near future.

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