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The
countdown to the budget has begun, and as D-day Feb 28 approaches,
volatility bred by anxiety as also greed is likely to increase
substantially, fuelled by an increase in speculative activity,
as is witnessed every year. For the IT sector, which has witnessed
a considerable increase in volumes and volatility recently,
the next two weeks could see prices fluctuating in ranges
between 15-25 percent.
Technically, the overall market, including both the indices
the BSE Sensex as well as the S&P Nifty continue to emit
bullish signals. As regards the IT sector, mixed signals are
emerging with Satyam looking extremely bullish and Digital
acting to the contrary and indicating bearish signals. Other
stocks are expected to remain range-bound.
CMC
As indicated in our last issue, the CMC stock continued to
be in the consolidation phase. The stock moved in a narrow
range of Rs 23.50, touching a high of Rs 395 on 13th February
and low of Rs 371.50 on 11th February. The stock will continue
to be in the consolidation phase. On the downside, its minor
and major support levels, placed at Rs 288 and Rs 207, could
be tested. While on a rise the scrip could find resistance
at 417 and Rs 515 respectively.
Digital Globalsoft
As indicated, the Digital stock continued to rise and touched
an intra-day high of Rs 614.70 on 11th February. It recorded
an intra-day low of Rs 581.30 on 13th February. Even though
the stock touched Rs 614.70, it is showing some signs of topping
out, as we had indicated in the last issue. As the stock did
not go through the consolidation phase, the first signs of
weakness are being seen. The stock has broken the trendline
on the southern side at the Rs 586 level and could see an
intermediate fall.
HCL Technologies
Although the stock touched an intra-day high of Rs 297.80
on 11th February, the intermediate rally on the stock came
to a halt on the same day, as the stock was unable to rise
above the Rs 300 level. The stock is still above the 200-day
moving average but could fall below this level in few trading
sessions if the weakness persists in the scrip. It is essential
that the stock moves above the Rs 330 level for any upward
movement to resume.
NIIT
The stock moved in a narrow range of Rs 6 during the course
of the week. It touched an intra-day high of Rs 239 and intra-day
low of Rs 233 level. This sideways movement will continue
for a further period of few trading sessions before it could
resume to rise again.
Satyam Computers
As we had indicated, the bullishness on the Satyam stock continues
and the stock has come closer to the level of Rs 299 on an
intra-day basis on 14th February. The stock, if it is able
to move above the Rs 310 level, could flare up more above
the Rs 332 level without any difficulty. This scrip is extremely
bullish.
Wipro
The stock has moved in a narrow band of Rs 68, after touching
an intra-day high of Rs 1,720 and intra-day low of Rs 1,652.
It is essential that the stock moves above the Rs 1,770 level
for the stock to resume its rally and move above the Rs 1860
level.
Infosys
The Infosys stock continued to correct and moved in a sideways
manner during the course of the week. The stock touched an
intra-day high of Rs 3,863.40 and intra-day low of Rs 3,762
and still is above the 200-day moving average. The correction
in the stock will continue for a further few trading sessions
before it can cross the Rs 4,150 level.
Nasdaq
The Nasdaq will indicate a trend reversal if it crosses above
the 1970 level. The level is a major resistance point, and
if crossed, will indicate the beginning of powerful upswing.
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