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Trading strategy for April 7, 2000

Though technology stocks have shown a recovery, no long positions are advisable for short term traders. After such a fall chances of whipsaws are very high. For this reason, only those who are comfortable with high risk, should trade in technology stocks.

SBI: The stock has crossed its first top of Rs 205 and has closed strong. Immediate support for the stock is at Rs 195, while major supports lie at Rs 185. On the upper side, first barrier is at Rs 215.

MTNL: The stock is currently on a major downtrend. It has a made a double top at Rs 225, which will act as a major barrier. Once this is crossed, the next major resistane lies at Rs 250. On the lower side, the stock has a minor support at Rs 201.

Ranbaxy: The main trend is down for the stock, and has a strong resistance at Rs 660 and then at Rs 680. The stock does not have any significant support on the lower side, and appears weak.

L&T: The stock is yet to decide its direction. On the upper side, it has its first barrier at Rs 290, whereas major resistance lies at Rs 310. On the lower side, it has support at Rs 265.

Wipro: The stock has posted a double bottom at Rs 4400. which is also a previous support level. Unless this level is broken, the short-term outlook will be positive. On the upper side, first resistance exists at Rs 5200. This is the only software stock which has not broken its medium term support levels in the recent panic.

Sterlite: The stock has shown extreme weakness. The fall is likely to accelerate below Rs 660. It has its first resistance at Rs 710 and major barrier lies at Rs 850. Stock does not have any immediate supports.

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