Trading Strategy for July 26, 2000

Sensex: After a one-way fall of 1000 points, the Sensex showed a sharp rally. Since the current move is of a corrective nature, one should wait before initiating long positions. The level of 4050 points can used as a new reference point in the short run. It would face a strong hurdle at around 4600.

Sterlite: Thanks to a sharp rally, this stock managed to cross its major resistance of Rs 860 and the next hurdle is only at 940. It has made a double bottom at Rs 780 which can be used as a stop loss point for all long positions.

Satyam: Like others, this stock has also showed a sharp move from the day's low. It has a major hurdle at Rs 2900. On the downside, immediate support is at Rs 2500 which can be used as stop loss.

Infosys: For this stock, the major hurdle is at Rs 7500. One should avoid long positions at this juncture. Immediate support exists at Rs 6850.

Orient Info: This stock gained 16 per cent, and the move was much more from the day's low. The stock is above its short-term resistance and appears attractive on the upper side. A strong base exists at Rs 175 which can be used as a stop loss for long positions.

Daily Technicals

Money

Tell us what you think of this feature