BSE Sensex: After hitting a high of 6150 on February 14, 2000, the BSE Sensex had fallen to the level of 4109 on May 3, 2000, a fall of 33.2 per cent or 2041 point. Instead of hitting a low on 55th day, it has made a time-being bottom on 53rd day. For the entire month, the level of 4110 is a very crucial. Unless it close below this level for two consecutive days consider worst is over. On May 4, 2000, the Sensex had given a close of 4553 level. Hence, the on going rally should be considered as relief or corrective of nature. On the upperside, the Sensex will have to cross and close above 4876 level for three consecutive days then only think of perfect reversal and there after only expect all-round buying. Above this level, it will face strong resistance at 5100 or 5425 level. Minor, but, crucial support exists at 4470 level. Below this level bears will always have upper hand. If it breaches 4110 level then expect only blood bath. On going rally may fizzle out either on 8 or 13th trading session from the low of 4109 level.
Reliance: Negative divergence in both weekly and monthly chart indicate that again scrip will come under bear grip. Any revival in stock should be considered as best opportunity to exit only. The level of Rs 312 and Rs 361 are trend decider for whole month. Two consecutive close below or above this level will create one side movement. Below Rs 312 it can slide to Rs 290 level and consider this as last major monthly support. On the upperside, it can flare to Rs 390, but chances are very remote. Below Rs 290, expect free fall upto 263 level.
Food and dairy products : Buy Britannia, Cadbury and Nestle. All these three stocks are looking great buy, of course technically. Patient traders should take position in these stocks as these stocks will not give zigzag movement like ICE stocks. Above Rs 545, Britannia can easily flare to Rs 586, Rs 620 or Rs 660 is also possible. Consider Rs 502 as monthly support. Unless, Cadbury closes below Rs 810, there will be no problem. Any crossover and close above Rs 871 will take the scrip to Rs 900, Rs 943 or Rs 1020. For Nestle, the level of Rs 296 and Rs 344 are crucial support and resistance level. Above Rs 344 it can flare upto Rs 367 and thereafter expect non-stop rally upto Rs 410.
Reckitt & Colman and Procter & Gamble : Charts indicate that both these stocks are ready to explode very on upperside. Rounding bottom in Reckitt Colman indicates its ready to take off on upperside. Above Rs 204 it will remain firm only and it can flare to Rs 222, Rs 236 and thereafter expect a level of Rs 264. Consider Rs 188 as rock bottom monthly support. Box chart has already given a powerful buy signal for Procter & Gamble. Above Rs 598 it will favour bulls only and on upperside last hurdle exists at Rs 663 and thereafter it can zoom to Rs 700. Both these stocks are very low profile and volumes are also low.
HDFC and ICICI : Both these stocks are red hot sell. Any revival should be considered as best opportunity to exit only. Negative divergence and MACD have already given a sell signal in HDFC. The level of Rs 467 is a trend decider. If the scrip closes above this level for two consecutive days then it can flare upto Rs 488 or Rs 515, but chances are very remote .On downside last support exists at Rs 419 thereafter expect a slide upto Rs 397 or Rs 372. Sell ICICI with stop-loss of Rs 133 and Rs 140. Major hurdle exists at Rs 149. On downside it can slide upto Rs 115 and thereafter a level of Rs 98 is possible. Both these counter are best for hedge, so bears can take advantage.
HDFC Bank and ICICI Bank : Expect a free fall in both these scrips. The level of Rs 233 and Rs 259 are support and resistance for HDFC bank. Above Rs 259, it will face strong resistance at Rs 286. Two close below Rs 233 will take scrip to Rs 196 or Rs 174 by month end. Sell ICICI Bank on every rise. Major resistance exists at Rs 237. Below Rs 212 level it will favour bears only and expect a slide upto Rs 187 or Rs 166.
ICE stocks : Chart of maximum ICE stocks are indicating that corrective or relief rally had started and for time being worst is over. Have a eye on particular level and for below mention scrips and they will have to close above these level for two consecutive days. Satyam will show strength above Rs 3512. Buy Pentamedia with a stop-loss of Rs 428 and any crossover above Rs 634 will create hectic buying. Above Rs 422, Silverline will regain its lose glory, buy this stock on every decline. Major resistance exists at Rs 555. Decisive crossover above Rs 1153 will take Global Telesystems to Rs 1570. Consider this as major hurdle. HFCL will have to cross Rs 1097, then only expect real buying and expected upper target thereafter are Rs 1270 or Rs 1460. Above Rs 660, Zee Telefilms will favour bulls. The scrip will face strong resistance at Rs 813 and thereafter it will try to touch Rs 1000.
