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Volatile
phase ahead
Deepak
Sahijwala & Sanjay R Bhatia
The markets continued to move in a range-bound trend during
the course of the week. Traders and speculators were active
in index heavyweights, which helped the index post gains.
Incidentally, FIIs have again turned net buyers on the bourses
after a long time, buying into major index heavyweights and
frontline tech stocks. Mutual funds, however, continued to
be net sellers on the bourses to meet redemption pressures.
Technically, the markets continued to move in a range-bound
manner amidst occasional volatility. Presently, the benchmark
BSE Sensex continues to face stiff resistance at the 3100
mark as it faced selling pressure above this level. It is
important that the benchmark Sensex moves above this level
and sustains above it, initially for four trading days, followed
by 12 trading days, for the market to indicate a bottoming
out and a major rally to unfold. The positive development
for the bourses, however, is that FIIs have turned net buyers,
but they will have to continue to remain so for the markets
to sustain a rally.
CMC
The CMC stock has moved in a range of Rs 86.55 during the
course of the week, touching an intra-day low of
Rs 445.25 on August 16 and an intra-day high of Rs 531.80
on August 20. The stock has been able to stay above the crucial
Rs 445 level during the consolidation period, which has helped
it post a rally. It is now closer to its resistance level
of Rs 512, after which it faces resistance at the Rs 521 level
and could face some selling pressure due to profit booking.
If it is able to successfully cross these two levels, it could
move closer to the Rs 550 level.
Digital GlobalSoft
The Digital stock has moved in a range of Rs 47.70 during
the course of the week, touching an intra-day low of Rs 556.15
on August 16 and an intra-day high of Rs 603.85 on August
21. Even though the stock moved below the Rs 563 level, it
was quick to bounce back above this level, which resulted
in a minor rally. The present rally could take the Digital
stock closer to the Rs 640 level.
HCL Technologies
The HCL Tech stock has moved in a range of Rs 29 during the
course of the week, touching an intra-day low of Rs 186 on
August 16 and an intra-day high of Rs 215 on August 21. The
HCL Tech stock was able to stay above the Rs 174 level, and
has been able to move above the
Rs 200 level too. Now however, it is likely to face selling
pressure at higher levels for a few trading sessions, but
may not fall below the Rs 189 level. On the upside, it is
likely to face resistance at the Rs 217 level.
Infosys Technologies
The Infosys stock moved in a range of Rs 221.90 during the
course of the week, touching an intra-day low of Rs 3,183.10
on August 16 and an intra-day high of Rs 3,405 on August 21.
The rally on the Infosys stock continued and it was able to
stay above the Rs 3,180 level. Infosys now faces resistance
at the Rs 3,433 level; and if it is able to move above this
level, it could rise closer to the Rs 3,544 level.
NIIT
The NIIT stock has moved in a range of Rs 28.25 during the
course of the week, touching an intra-day low of Rs 133.35
on August 19 and an intra-day high of Rs 161.60 on August
21. The stock has been able to stay above the Rs 132 level,
which augurs well for it. The stock is now likely to move
in a range-bound manner for a few trading sessions till a
clearer trend emerges.
Satyam Computers
The Satyam stock has continued to move in a narrow range of
Rs 14.20 during the course of the week, touching an intra-day
low of Rs 208.70 on August 16 and an intra-day high of Rs
222.90 on August 21. The stock was able to move above the
Rs 215 level and has moved closer to the Rs 224 level. It
could now cross the Rs 235 level, if it closes above Rs 223.
Wipro
The Wipro stock has moved in a range of Rs 137 during the
course of the week, touching an intra-day low of Rs 1,102
on August 16 and an intra-day high of Rs 1,239 on August 21.
The stock is likely to test the Rs 1,295 level in a few trading
sessions.
View
the STRATSTAR
FUND WIZARD BUY/SELL REPORT FOR 26/08/2002
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Nasdaq
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| Last
week’s rally on the Nasdaq continued during the course
of the week. The Nasdaq has been able to move above the
1350 resistance level, which is a positive sign and augurs
well for the rally to continue. However, it is likely
to face resistance at the 1466 level, and if it is able
to move above this level it could cross the 1600 mark.
Technically, it may be assumed that the worst is over
for the Nasdaq, as velocity divergences clearly indicate
a bottoming out. |
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