Trading Strategy for August 16, 2000

Sensex: The Sensex did break its support level of 4160 points but rallied smartly almost immediately to close way above the support 4160. The breaking of 4160 was an extention of its fall for the last three trading sessions. But if it breaks the low of the day which is near 4142 points then the outlook will turn negative. On the upper side, the Sensex will continue to face resistance at 4360 points.

Global Tele: The stock has posted a double bottom at Rs 919 on the daily charts and this level should be used as a reference point for short term as well as medium term long positions. It faces resistance at Rs 1060 and thereafter a strong barrier lies at Rs 1200.

Infosys: The stock did not break its minor support level of Rs 7150 which continues to act as a immediate support level. On the upper side it has resistance at Rs 7700 and thereafter a major barrier lies at Rs 8500 level.

DSQ Soft: The stock is close to its immediate resistance of Rs 650 and thereafter the next barrier is at Rs 680. It has an immediate base at Rs 610 and major support lies at Rs 580.

SSI: This stock has posted a higher bottom and has managed to cross first minor top. It has a major resistance at Rs 2300. On the lower side it has an immediate support at Rs 1950, which can be used as a stop loss for short term long positions.

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