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The
markets continued to trade in a lacklustre and range-bound
manner ahead of the UN meeting to decide the fate of Iraq.
The uncertainty of an attack on Iraq has kept the markets
cautious. Institutional activity was at its minimal. Traders
and speculators were seen taking speculative positions in
PSU and banking stocks on the buy side. FIIs continued to
remain net buyers on the bourses, albeit their purchases were
limited. In fact, mutual funds were also net buyers during
the course of the week.
Technically, the markets recovered after last week’s
correction. However, volumes continued to remain moderate
due to the uncertainty of war. The BSE Sensex is likely to
face resistance at the 3295 level. If it manages to sustain
above this level, it is likely to test the 3357 level. On
the downside, the 3207 level is an important support level.
One thing is certain in the face of the impending Budget and
the Iraq crisis: the markets are certainly going to get volatile.
CMC
The stock moved in a range of Rs 54, touching an intra-day
low of Rs 476 on January 30 and an intra-day high of Rs 530
on February 4. Selling pressure continued on the CMC stock.
It has also failed to find support at the Rs 506 level. If
it fails to move above the Rs 506 level, it is likely to test
the Rs 425 level.
Digital GlobalSoft
It moved in a range of Rs 146.70, touching an intra-day low
of Rs 493.30 on January 30 and intra-day high of Rs 640 on
February 3. In fact, it has been able to sustain above the
Rs 480 level, which is a positive sign. The news of Alliance
mutual fund, which holds large chunks of the Digital Globalsoft
stock, not exiting from India, has helped it to recover lost
ground. It now faces resistance at the Rs 662 level. On the
downside, the Rs 493 level would act as an important support
level.
HCL Technologies
The HCL Tech stock has moved in a range of Rs 19.20, touching
an intra-day low of Rs 154 on January 30 and an intra-day
high of Rs 173.20 on February 4. Though it moved above its
resistance level of Rs 168, it failed to sustain above this
level and has since fallen back below this level. Now, if
it moves above the Rs 173.20 level it is likely to test the
Rs 182 level. On the downside, the Rs 140 level could act
as support level.
Infosys Technologies
It moved in a range-bound trend fluctuating as much as Rs
266.65, while touching an intra-day low of Rs 4,181.35 on
January 30 and an intra-day high of Rs 4,448 on February 4.
However, It has managed to bounce back above the Rs 4,266
level, which is a positive sign. The Rs 4,620 level continues
to be an important resistance level. It is therefore likely
to continue to move in a range-bound trend, till it moves
above this level decisively. On the downside, the Rs 4,180
is likely to act as a strong support level.
NIIT
It moved in a range of Rs 12.95, touching an intra-day low
of Rs 132.75 on January 31 and an intra-day high of Rs 145.70
on February 4. It has moved in a range-bound trend. It is
likely to face resistance at the Rs 147.85. If it moves above
this level it is likely to test the Rs 175 level. On the downside,
it has a support at the Rs 125.10 level.
Satyam Computers
It moved in a range of Rs 18.10, touching an intra-day low
of Rs 215.40 on January 31 and an intra-day high of Rs 233.50
on February 4. It has continued to remain weak, but has managed
to stay above the Rs 214 level. On the upside, it faces resistance
at the Rs 233.50 level. On the downside, the Rs 214 level
is a crucial support level. If it breaks below this level,
it is likely to test the Rs 193 level.
| Nasdaq |
| The
weakness continues on the Nasdaq. The uncertainty of war
with Iraq has kept market sentiment cautious and rangebound.
The Nasdaq has fallen below its important support level
of 1319, which is a negative sign and if it fails to bounce
back above this level it is likely to test the 1272 level.
On the upside the 1358 level is an important resistance
level. |
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