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Trading Strategy for the week ending November 28, 1999

Infosys & HLL to play a major role

Sensex: Unless Sensex closes above 4700 for three consecutive days, consider every rally as a corrective rally only. In this week Sensex will face strong resistance at 4654 level, decisive crossover above this level can take the index up to 4717 or up to 4762. On the downside expect a fall to 4503, 4462 or 4406 is also possible. Major pivotals are showing heavy weakness, so unless they take U turn with high volumes bears will have upper hand.

ITC: Ongoing rally is 100 percent of corrective rally. The level of Rs 762 is a trend decider for this week, above this level it will favour bulls only and on upper side it can flare up to Rs 792 or expect a level of Rs 815. Major hurdle exists at Rs 832. On the downside after breaking Rs 762 expect a fall to Rs 736 or Rs 703 is also possible. Seventh trading session from Monday will give non stop one side movement. Expect real fire work above Rs 832 level only.

Mah & Mah: Technically one of the best scrips and 100 percent risk free too. Scrip has already broken a triangle decisively and that too with high volumes. Considering Rs 391 as rock bottom support, grab this scrip and for risk free trading buy above Rs 418. On upper side in this week it can flare up to Rs 449, Rs 463 or expect a level of Rs 481. Buy this scrip on every decline.

CIPLA: Really looking very hot buy, it will show its real power above Rs 1,439 and close above Rs 1,453 will create unexpected all round buying and upper freeze session will start in this counter. Close above Rs 1,453 will take the scrip straight up to Rs 1,553 or expect a level of Rs 1,670 before month end. Considering Rs 1,355 as weekly support, traders can grab this scrip. Below Rs 1,355 it can slide to Rs 1,315. Scrip has formed a falling triangle and chances are very bright it will explode on the upper side only.

NIIT: Any day in the coming six trading sessions the on going rally in this stock will fizzle out, above Rs 2,516 the scrip will favour bulls only and consider Rs 2,456 as weekly support. Crossover above Rs 2,581 will take the scrip up to Rs 2,707, Rs 2783. Two consecutive closes above Rs 2,516 level will again favour bulls only. If it breaks Rs 2,456 then expect a free fall.

CyberTech Syst: The most explosive scrip for the coming two weeks, scrip is ready to start its third wave with no divergence in any mechanical indicators, really looking very hot. Crossover above Rs 622 will create unexpected buying and the scrip can flare up to Rs 654 , Rs 694. Last major resistance exists at Rs 693. Chances are very bright that it will cross this level too and by this month end the scrip will touch Rs 780 to Rs 800. Weeekly support levels are Rs 601 and Rs 581. Catch it before it catches fire, remember what happened in KLG Syst .

Zee Tele: Above Rs 5,128, this scrip will be in the firm grip of bulls only. In this week it can flare up to Rd 5,321, Rs 5,424 or expect a level of Rs 5,512. Two consecutive closes above Rs 5,424 level will take the scrip straight up to Rs 5,930 level before this month end. If it breaks Rs 5,128 then expect a fall up to Rs 5,022 or Rs 4,915 is also possible. For Mondays trading it will get support at Rs 5,223, above this level it can flare up to Rs 5,375 or Rs 5,414 is possible. Everything looks rosy for this scrip at this moment, but be careful because in weekly and daily charts the scrip has formed expending triangle, so it will favour bears only and traders can expect one side movement from November 25th onwards.

Infosys & Hind Lever: Both the scrips are leaders in their fields and technically one is looking strong and other is looking very weak. Above Rs 8,473, Infosys will favour bulls only, but for risk free trading buy this scrip above Rs 8,778 only, decisive crossover above this level will take this scrip straight up to Rs 9,400 level before this month end. Minor hurdles for coming week are Rs 8,966 and Rs 9,105. If it breaks the above mentioned levels then expect a fall to Rs 8,215. Hind Lever is looking very weak and expect free fall or disaster below Rs 2,268, non stop slide to Rs 2,145 or Rs 2,066 is not ruled out. Every rise in this scrip should be considered as an opportunity to exit. It looks that both these counter will have tough times in the coming days and they will only decide the future trend of the market.

Himachal Fut: From Monday onward expect one side movement for 13 trading sessions. Considering Rs 354 as weekly support and Rs 381 as last crucial hurdle for this scrip. Crossover above Rs 381 will create all round buying from all the corners. Scrip can easily flare up to Rs 424 or expect a jump up to Rs 467 by this month end. Volatility chart is indicating that some operators are behind this scrip and this time they will 100 percent try to exit from this scrip, be cautious on upper side because it has formed expanding triangle too.

Guj Flouro, Shasun Chemical, Subros: Traders and investors can grab these scrips and it looks that they will very soon can give 50 percent return. Above Rs 80, Guj Flouro can flare up to Rs 96 or expect a level of Rs 120. Last hurdle for Shasun Chemical exists at Rs 173, decisive crossover above this level will take scrip up to Rs 195 or Rs 230 is possible. 100 per cent risk free buy, grab Subros above Rs 78 it will favour bulls and expected upper targets are Rs 96 and Rs 115. Apart from traders, Investors can start picking delivery of all these stocks for a period of 3 months.

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