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Trading Strategy for January 19, 2000

Catch EIH and Nirma

Elliott Wave analysis for medium- to long-term investors: After hitting an intermediate degree top at 4966 on August 30, the Sensex started on its sideways correction to bottom out at 4209 on November 2, not before rallying above its orthodox top at 4966 to 5151 on November 11. It was at 4209 that the last sub-wave of the intermediate rally (sub-wave 5 of wave [1]) was triggered. This last sub-wave is expected to be an extension. This sub-wave has already completed its two legs of movement: the first leg was completed when the Sensex rallied to 4770 on November 25, and the second leg came in the form of a correction as the Sensex sought to move sideways to bottom out at 4585. We're presently in the 3rd minuette of sub-wave 5, and this minuette can be expected to top out (most probably) in the 5730-6050 area. In fact, we should see the Sensex registering a new top close to the 6000 point mark before March 9, 2000.

BSE Sensex: The level of 5434 is a trend-decider. On upper side it can flare upto 5520 or 5555. On downside it can slide to 5405. Above 5555 it can flare upto 5610.

Nifty: The level of 1603 is a trend-decider. It can flare upto 1618 or 1630 which is a crucial resistance. Below 1603 it can slide to 1590. Above 1630 it can flare upto 1643.

Reliance: It was clearly mentioned to buy this stock yesterday and in the weekly trading strategy. On upper side it will try to touch Rs 326 or Rs 331.Consider Rs 317 as trend-decider. Above Rs 331 expect a jump to Rs 338.

Tisco: Above Rs 179 it will try to touch Rs 196 or Rs 213. For today, buy with stop loss of Rs 172. On upper side it can flare upto Rs 180, Rs 184 or Rs 190. Buy on every decline.

Apollo Tyres: From the level of Rs 175, it has appreciated over 15 per cent in just five trading sessions. It looks that it will easily touch Rs 218 or Rs 238 in the coming days. For today, buy with stop loss of Rs 202. It can flare upto Rs 215, Rs 222 or Rs 230. It is still going at throwaway price.

EIH: Grab this stock in the morning session and get unexpected returns. It's a rocket and will explode heavily. Above Rs 198 it will favour bulls. It can flare upto Rs 220 or Rs 242. For today, buy with stop loss of Rs 197 and Rs 193. On upper side it can flare upto Rs 207, Rs 214 or expect an upper freeze.

Ranbaxy: Above Rs 995, it will favour bulls. It can flare upto Rs 1042 or Rs 1090. Buy this stock on every decline. For today, buy with stop loss of Rs 996 and Rs 986. It can flare upto Rs 1020 or Rs 1035.

ITC: Buy with stop loss of Rs 823. On upper side it can flare upto Rs 845 or expect a jump to Rs 860. Below Rs 823 it can slide to Rs 810. Above Rs 826 it will favour bulls only.

Sterlite: Any decline in the stock should be considered as an opportunity to buy. Above Rs 476 it will favour bulls only. On upper side it can flare upto Rs 530 or expect a jump to Rs 590 by month end. For today, consider Rs 490 as a trend-decider. On upper side, it can flare upto Rs 502 or Rs 520. Below Rs 490 it can fall to Rs 470.

MTNL: The level of Rs 315 is a trend-decider. On upper side it can flare upto Rs 326 and thereafter expect a jump to Rs 331. On downside it can slide to Rs 305.

L&T: The level of Rs 463 is a trend-decider. On upper side it can flare upto Rs 472 or Rs 484. Buy this stock on every decline. The worst is over for this stock and it's ready to take off. Have some patience but you will get unexpected returns.

Infosys: Consider yesterday's bottom of Rs 11,400 as a crucial support. For today's trading buy with stop loss of Rs 11,980 and Rs 11,860. It can flare upto Rs 12,560 if it crosses Rs 12,268. Above Rs 12,558 it can zoom upto Rs 12880. On downside it can slide to Rs 11,660 and Rs 11,080.

Global: The level of Rs 1033 is a trend-decider. It can flare upto Rs 1070 and thereafter don't remain short. On downside it can slide to Rs 990. Buy on every decline.

Pentamedia (Pentafour Software earlier): Below Rs 1240, it will favour bears only and it may slide to Rs 1080 and thereafter expect a free fall. For today, the level of Rs 1190 is a trend-decider. On upper side it can flare upto Rs 1225 or Rs 1240. On downside it can slide to Rs 1150 or Rs 1115.

Satyam: The level of Rs 2600 is a trend-decider. On upper side it can flare upto Rs 2660 or Rs 2705. On downside it can slide to Rs 2550 and thereafter expect a free fall.

Zee: The level of Rs 1027 is a trend-decider. On upper side it can flare upto Rs 1045 or Rs 1070. On downside it can slide to Rs 1005. Buy on every decline.

SBI: The level of Rs 240 is a trend-decider. On upper side it can flare upto Rs 243 or Rs 247. On downside it can slide to Rs 236 and thereafter expect a free fall to Rs 233. Instead of selling this stock, buy on every decline.

Nirma: Above Rs 752 it will favour bulls. On upper side, it can flare upto Rs 800, Rs 860 or Rs 925.

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