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Trading Strategy for the week ending January 16, 2000

BSE Sensex: After hitting a high of 5539 level, the Sensex touched a low of 5185 and recovered to close at 5410. From the last two trading sessions, it was able to close above 5385. A close above this level on Monday will take it to a new zone. Minor hurdle exists at 5477 and above this level it can flare upto 5575 or 5630. Below 5385, it can slide to 5300 or 5200. There are bright chances that it will favour bulls this week. Major software, telecom and entertainment stocks will take a U-turn this week.

Reliance: In five trading sessions, it has risen by Rs 80 and there are bright chances that the current rally will exhaust by midweek and a heavy correction will start. Above Rs 315, it will try to touch Rs 340, Rs 353 or Rs 365. Between Rs 340 and Rs 353, expect an all-round selling. But if it closes above Rs 338 then expect a smooth and non-stop rally to Rs 392. Consider Rs 290 as weekly support.

Tisco: This scrip is a goldmine and is ready to start its third wave. Above Rs 162 it will favour bulls only. A crossover above Rs 173 will take it to Rs 183 or Rs 196. Traders are advised to buy this stock on every decline as time-goal method indicates an unexpected price in the next six weeks. Below Rs 162 it can slide to Rs 155.

SBI: This scrip has broken a neckline of an inverse head and shoulder with very high volumes. The height of the head is Rs 75 and the chart indicates that it will touch a figure of Rs 325. Above Rs 269, it will be in the firm grip of bulls. After crossing Rs 286, it will easily flare up to Rs 303 or Rs 310. Consider Rs 263 as weekly support. Below this level, it can slide to Rs 255 level.

BSES: Heavy accumulation is on at BSES for the last 16 trading sessions. It has formed an inverse head and shoulder pattern and it is on the edge to explode heavily. Above Rs 206 it will flare upto Rs 216, Rs 230 or Rs 240. Consider Rs 200 and Rs 193 as rock-bottom support.

United Phosphorus: Falling wedge in daily closing chart and minor higher bottom after a period of four months indicates that it is ready to start a powerful rally. A crossover above Rs 164 with high volumes will take it to Rs 174, Rs 187 or Rs 206. Considering Rs 156 and Rs 151 as weekly support, traders can catch this scrip on Monday to get unexpected returns.

BPL: The charts indicate that the worst is over on December 28, 1999 and looks ready for a dynamic upmove. Instead of trading at this counter, traders are advised to buy this stock and take long positions in carry forward to get unexpected returns. Considering Rs 247 and Rs 239 as rock-bottom monthly support, decide your strategy. A decisive crossover above Rs 262 will take it to Rs 278 or Rs 298. Have a close watch on Rs 294. If it closes above this level, expect a non-stop rally to Rs 320 or Rs 350. Investors can get more then 50 per cent returns this month.

L&T: A drastic fall started from the level of Rs 630 and will stop around Rs 516 or Rs 501 and it should touch these levels by Monday. It will start its upmove from Tuesday. Instead of going short, traders can take long position at these levels. If it trades above Rs 543, then expect a price of Rs 578. A crossover above this level will take it to Rs 602 or 612. The chart indicates that this downfall should be considered as a buying opportunity.

Zee: A vertical fall from the high of Rs 1312 appears manipulative. The scrip may slide on Monday but traders are advised not to go short at this counter. Waldo method indicates some excellent news and thereafter expect upper freeze sessions for two or three consecutive days. Considering Rs 975 and Rs 946 as rock-bottom support, grab this stock. Above Rs 1028 level it can zoom to Rs 1093 and weekly resistance exists at Rs 1128. Thereafter it can easily flare upto Rs 1215 or Rs 1240. Start buying from Monday mid-session.

Jain Studio: It's a red hot buy. It has broken a triangle with heavy volumes and expect a price level of Rs 615 in a few days. Above Rs 434 it can zoom upto Rs 480, Rs 503 or Rs 530. Consider Rs 406 as rock-bottom monthly support. At this price of Rs 434, it is going at throwaway prices. The scrip will double in coming two months.

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