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Trading Strategy for the week ending April 9, 2000

While software stocks broke important levels last week, a large number of pivotals managed to show consolidation. Most of them have formed a good base near their medium term supports. And for those who go in for bottom fishing, these stocks appear a good bet. Stocks like ACC, TISCO, L&T, BHEL, Glaxo, MTNL, Escorts, TELCO and M&M feature in this list.

SBI: After a rally, the stock showed a correction last week. However, the close has been positive as it has managed to cross its immediate resistance. One can take a position with Rs 185 as a stop loss. On the upper side, the upmove should accelerate above Rs 215.

L&T: After a sharp fall in the first half of March, its technical position has been improving steadily. It has formed higher bottoms. It has made a good base at Rs 255 which can be used as a reference point for all long positions. On the upper side, the resistance is at Rs 350.

ACC: For more than two weeks, ACC moved in a range of Rs 128-142. For the third time it has closed above Rs 140 which is a good signal and appears to be ready for an upward correction to its previous fall. With Rs 128 as a stop loss, one can take positions on declines. On the upper side, the first resistance is around Rs 160 and the next hurdle is at Rs 180.

BHEL: This stock is very close to its medium term support of Rs 120. One can take a long position considering this as a reference point. On the upper side, after Rs 142, the next resistance is at Rs 160.

TELCO: The stock has managed to form a double bottom at Rs 120. With this as a reference point, one can take long positions. On the upper side, the first resistance exists at Rs 155.

ICICI: After a fall from its peak, the stock has moved in a narrow range and has made a good base at Rs 130. One can take a long position considering this as a stop loss. On the upper side, the stock has an immediate resistance at Rs 148.

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