Trading strategy for October 6, 2000

Outlook: Today's high in all the technology stocks would serve as a major resistance in the short term and the outlook has tuned from bad to worse. No long positions are advised at this stage. The momentum on the downside is likely to increase.

Sensex: The Sensex failed to cross the hurdle of 4200 points and has closed on a negative note. The outlook will is further likely to weaken below 4030 points.

Satyam: The stock has made a strong resistance at Rs 510. This would serve as a major hurdle in the short term. On the lower side, it has broken its first support of Rs 485 and next support lies at Rs 465.

DSQ Software: The stock has its last support at Rs 500 below which the medium term outlook will turn negative. On the upper side, it has an immediate resistance at Rs 523 and major resistance 540.

Zee Tele: The stock has broken its first major support of Rs 440 and has closed on a negative note. Next major support is at Rs 415 and therafter at Rs 400.

ITC: The stock could not cross its major resistance of Rs 745. This level would serve as a major resistance in the short term. On the lower side it has last support at Rs 700.

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