Trading strategy for September 27, 2000

Outlook: As expected the Sensex could not sustain itself at higher levels. For any sustained revival, the software stocks will have to cross Monday's high and only then one can start contemplating fresh long positions. The outlook will further deteriorate when the panic bottoms of Friday are broken.

Sensex: The level of 4040 would serve as the immediate support and the next major support lies only at 3830 points. On the upper side it has an immediate resistance at 4180 points.

Himachal: This stock has broken its first major support and has closed on a very weak note. It has a minor support at Rs 1250 below which the outlook will deteriorate further. On the upper side, it has an immediate resistance at Rs 1360 and therafter at Rs 1430.

Silverline: The stock has made an immediate resistance at Rs 381 and thereafter at Rs 405. On the lower side, immediate support is at Rs 364 and thereafter at Rs 355.

Pentamedia: The stock has a support at Rs 392, below which the outlook will worsen further. After this the next support is at Rs 375. On the upper side, immediate resistance is at Rs 411 and thereafter at Rs 426

HDFC: After a sideways move for almost 5 months the stock has closed below its first medium term support of Rs 460. Next medium term support lies at Rs 350. On the upper side, it has a major resistance at Rs 545.

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