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Trading Strategy for the week ending December 12, 1999

Sensex: Friday was the first day for sensex on which it had closed above 4696 level and for real bull run it will have to close above this level in coming two trading session also. On upper side it can flare up to 4785, 4825 and major hurdle exists at 4860. If it breaks and starts quoting below 4690 level then expect a fall to 4643, 4610 or 4652 is also possible. Apart from Satyam, Pentafour and Silverline all other software stocks are looking very weak and traders are advised to sell on upper levels. Banks stocks are looking very hot buy, grab them before they catch fire.

SBI: Considering Rs 235 as rock bottom monthly support, traders can buy this stock on every decline. Crossover above Rs 249 with high volumes can take this scrip straight up to Rs 264. Minor hurdle exists at Rs 253. Scrip has formed a huge triangle in weekly closing chart and it indicates that on any Friday if it closes above Rs 253 level then traders and investors can expect a jump of Rs 100 in a very short time frame.

Reliance: The levels of Rs 209 and Rs 226 are trend deciders for this scrip. Scrip will have to cross Rs 218 level then only it will show its strength to face the resistance at Rs 226. If it breaks Rs 209 level with high volumes then expect a free fall to Rs 198. It looks likely that it is ready to form lower tops and traders can see heavy one side selling below Rs 209. Daily and weekly charts are fully covered with black clouds and it indicates some unfavourable news may flash, sell if revives.

ICI: Really looking very hot, it has already broken a inverse head and shoulder pattern and is ready to start its third wave too. Considering Rs 206 as monthly rock bottom support, buy this stock! Crossover above Rs 223 level will take the scrip up to Rs 240 and there after it can easily flare up to Rs 255. Decisive close above Rs 255 level can take the scrip up to Rs 300 level by this month end.

Satyam: Last week it was mentioned that this scrip will continue its northward movement in coming days. Crossover above Rs 2,121 will take it up to Rs 2,215, Rs 2,244. Last major hurdle for this scrip is Rs 2,244. There after expect a jump up to Rs 2,312 or Rs 2,410 level is also possible. Weekly support exists at Rs 2,028. It has broken a huge triangle and slowly it may touch a level of Rs 2,600.Expect a free fall if breaks Rs 2,028.

Global Tele: All mechanical indicators are showing real strength and chart is indicating that fresh rally that will be explosive is on the cards. Above Rs 690 level it will 100 per cent favour bulls only. On upper side it can flare up to Rs 751 or major resistance exists at Rs 780. If it is able to close above Rs 780 for two consecutive days then it can easily zoom up to Rs 850 by this month end. If it breaks Rs 690 then expect a fall to Rs 670. Considering Rs 707 as support for Monday's trading buy this stock, upper targets are Rs 735 or Rs 755.

Himachal Fut.: Grab this scrip and at this price level too investors can buy this scrip to get unexpected returns in the coming months. Already it has closed above major resistance of Rs 432, above this level it will favour bulls only. Consider this level as trend decider for this week. On upper side expect a rally up to Rs 468 or Rs 493 is also possible. Two consecutive closes above Rs 493 will take the scrip up to Rs 550. Below Rs 432 expect a fall to Rs 410. By mid January it can touch Rs 650.

Karur Vysya Bank and Vysya Bank: Accumulation is over in both these scrips and they are ready to explode heavily in the coming days and chances are very bright that non-stop freeze is also not ruled out. Above Rs 145 KVB will favour bulls only and it can easily flare up to Rs 165, Rs 180 or Rs 195 is also possible. Major support exists at Rs 133. Worst is over for Vysya Bank, and it looks that strong upward move is on the cards, already it has crossed two main resistance levels, upper targets for the coming days are Rs 126 and Rs 148. Chart has given indicators that this scrip may also cross Rs 200 level and that too very soon. Both these scrips will be in the limelight in the coming days. Investors are advised to take delivery of both these stocks to get unexpected return.

Snowcem, Roofit Ind and Sunearth: Another round of heavy buying will start any moment in Snowcem. Above Rs 128 this scrip will be in the firm grip of bulls. Falling wedge is indicating real explosion in the coming days and upper targets are Rs 148, Rs 160 and there after sky is the limit. Expect a non-stop rally up to Rs 280 or Rs 325 level in Roofit Ind. Above Rs 244 it will favour bulls only. Crossover above Rs 264 with high volumes can take SunEarth to Rs 292 or Rs 335 in the coming days itself. All these three stocks are real gold mines. Buy on every decline. Small investors can have an eye on Kajaria Ceramics and Regency Ceramics from their current levels both these scrips may double very soon.

Yokogawa Bluestar: Technically one of the best stocks and ready to start its real bull run. It has broken inverse head and shoulder in weekly charts and it indicates that in a time span of two months it may double from this level. Traders can buy this stock considering Rs 130 as rock bottom price. On upper side expect a non-stop rally up to Rs 157 and there after it can zoom up to Rs 198. Buy and forget this stock, upper freeze session to start very soon.

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