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Trading Strategy for the week ending May 7, 2000

In the recent panic, most of the A-group shares have broken their medium term supports and their position is far from impressive. However, there are few stocks which have not broken their medium term supports, and appear relatively strong. Here are some reference points for those stocks.

Reliance: Major support for the stock is at Rs 310, and the last base for the stock is at Rs 290. However, if it moves above Rs 370, it will enter into a resistance-free area. This would be an extremely bullish signal.

Dr. Reddy's: The first base for the stock is at Rs 1250 and the next support exists at Rs 1200. Long positions can be liquidated below these levels. On the upper side, the last hurdle is at Rs 1750, and above this, the outlook will be extremely bullish.

HLL: The first major support for the stock is at Rs 2300, and the last base for the stock is at Rs 2200. Below these levels, one could make an exit.

HDFC: This is the only stock besides Reliance which is close to its all-time high. It has a strong base at Rs 420 which can be used as stop loss for all positions.

ICICI Bank: This stock has made a strong base at Rs 190 which can be used as a reference point for all long positions. The immediate base exists at Rs 220.

By Arc Investments and Consulting

Stocks

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