Trading strategy for October 20, 2000

Outlook: As expected, the software stocks recovered sharply from their lows but this move is just a corrective rally against the main downtrend. No long positions are recommended at this stage in these stocks.

Sensex: The sensex has posted a bottom of 3500 which would act as a reference point in the short term. On the upper side it will face resistance at 3900 points.

Satyam: The stock has its first resistance at Rs 360 level and thereafter at Rs 400. On the lower side it has an immediate support at Rs 320 and thereafter at Rs 290.

SSI: It has an immediate resistance at Rs 2200 and thereafter at Rs 2350. On the lower side it has an immediate support at Rs 2050 and then at Rs 1880.

ACC: ACC has an immediate hurdle at Rs 94 and thereafter at Rs 97. On the lower side though there is no significant reference point, it has a minor support at Rs 86 and thereafter at Rs 83.

Tisco: This stock is approaching its immediate hurdle of Rs 100 after which the next barrier is at Rs 110. On the lower side it has an immediate support at Rs 94 and thereafter at Rs 88.

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