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Trading Strategy for the week ending December 26, 1999

Sensex: Last week Sensex completed 55 weeks from a low of 2741 level and it had made a historic top of 5150 in that time span and in weekly chart oscillators had given a negative divergence and sell signal too. Any revival in sensex stocks should be considered as best opportunity to exit only. Chances are very remote that in near future Sensex may be able to cross 4944 and 5150. For this week it will have to cross 4777 level then only it will show its strength. Above this level it can zoom up to 4860 level. If it remains below 4710 level then it can slide to 4630 and consider this level as very crucial support. Below this level expect a panic fall to 4535, and after don't remain long in any sensex stock.

Siemens: Heavy accumulation with high volumes is going on and daily chart has formed an inverse head and shoulder pattern and head height is plus Rs 60. Close above Rs 491 level will create all round buying and expect upper freeze too. The level of Rs 462 and Rs 447 are rock bottom supports. Expected upper targets in coming days are Rs 535, Rs 552 and there after it can zoom up to Rs 600 level by this month end. Instead of trading in this scrip take long postion and carry forward and at present traders can take advantage of no -delivery period too. Buy on every decline to get unexpected return.

ICI: Traders can catch this scrip, because with high volumes it has broken a huge triangle in weekly closing charts and it is on the edge to spurt very heavily on upper side. Decisive crossover above Rs 255 level will create unexpected all round buying and upper freeze session will start. Scrip can zoom up to Rs 302 or Rs 340 level in coming days itself. Minor hurdle exists at Rs 278. Consider Rs 235 as rock bottom support. Scrip may move in opposite direction of market.

DSQ: No divergence, no sell signal in any mechanical indicators and weekly plus daily box chart has give a very powerful buy signal all these indicate an heavy up-move in this counter is not ruled out. The level of Rs 735 is a trend decider, consider Rs 682 as weekly support. On upper side expect a non stop rally up to these levels Rs 797, Rs 828 or Rs 920, have an eye on Rs 771 level. Decisive crossover above this level will create panic buying. It looks likely that northward movement may continue in this scrip for another 14 trading sessions.

Himachal Fut: Daily oscillators are showing weakness and the chart has formed a rising wedge. It indicates that any the moment scrip will tumble very heavily but weekly charts and oscilltors are indicating that this scrip is in the firm grip of bulls. Have an eye on Rs 560. Decisive crossover and close above this level will take this scrip straight up to Rs 645 or Rs 735 by this month end. Weekly support level exists at Rs 520 and there after it can slide to Rs 495 level. Don't remain long there after. Expect heavy zig-zag movement but above Rs 560 it is a risk free buy.

Nicholas Piramal and Dr.Redddy: Nicholas Piramal is on the edge to start a very dynamic wave. Crossover above Rs 735 will take the scrip straight up to Rs 820 or Rs 905 level and there after sky is the limit for this scrip. Weekly support levels are Rs 685 and Rs 678. Above Rs 692 it will favour bulls only and crossover above Rs 735 will create fire works. Dr.Reddy has already started its third wave and that too with high volumes and no divergence in mechanical indicaotrs. Considering Rs 1,372 and Rs 1,438 as trend deciders. Chances are very bright that this scrip will favour bulls only. Crossover above these levels will take the scrip to Rs 1,505 or Rs 1,695 level by this month end.

Alembic Chem & Zandu Pharma: Both these scrip will give an appreciation of 50 percent in the coming days. Box chart of both these scrips has given a powerful buy signal. Above Rs 506 Alembic Chemicals will be in the firm grip of bulls only. Expected upper targets are Rs 590, Rs 660 or Rs 725 is also possible. Consider Rs 485 as rock bottom. Zandu Pharma has formed a saucer formation and it indicates accumulation is going on, before it spurts grab this scrip. Crossover above Rs 4,845 will create heavy buying and it can zoom up to Rs 4,930, Rs 5155 or Rs 5,400 is possible. Consider Rs 4,760 as support levels. Investors can buy these stocks and in three months it will double.

Reliance Capital and Bomaby Dyeing: Grab both these stocks. Expect 50 percent rise in both stocks in 20 trading sessions only. Reliance Capital will create havoc in market, after it crosses Rs 104 level. There after expect non-stop rally up to Rs 125, Rs 144 or Rs 160. Buy on every decline. Support levels are Rs 94 and consider Rs 86 as rock bottom. Bombay Dyeing has formed a rounding bottom and ready to start its third wave. Above Rs 57 it rally up to Rs 72 or Rs 90. Worst is over for Bombay Dyeing.

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