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Market’s IT story disappoints
Deepak Sahijwala & Sanjay R Bhatia
Volumes continued to remain subdued with
infotech stocks suffering the most, amidst high bouts of volatility.
Disappointing results from Infosys and Wipro did not help matters
and seems to indicate that the IT story may be over. Traders and
speculators swapped their portfolio of tech stocks for banking and
index heavyweights. FIIs turned net sellers, infact the week saw
the largest selling spree witnessed by FIIs in recent years. Mutual
funds also continued to remain net sellers.
Technically, the benchmark BSE Sensex continued
to be weak but managed to stay above the 2916 level. It is now important
that the Sensex consolidates at the present level. Stock-specific
action however, would continue to be seen. The Q4 results and future
earnings guidance to be announced during this month are likely to
set the trend for individual stocks. The BSE Sensex is likely to
face resistance at the 3049 level. On the downside, the 2916 level
would continue to be an important support level. If this level is
breached a further fall is expected and the Sensex is likely to
test the 2838 level.
CMC
The CMC stock moved in a range of Rs 64.75, touching an intra-day
high of Rs 510 on April 10 and an intra-day low of Rs 445.25 on
April 11. As indicated in the last issue, the CMC stock found support
at the Rs 445 level. Now it is important that it sustains above
this level as it is likely to face resistance at the Rs 523 level.
Digital GlobalSoft
The Digital stock moved in a range of Rs 152.15, touching an intra-day
high of Rs 587.15 on April 10 and intra-day low of
Rs 435 on April 11. Though, it fell below its support level of Rs
459, it was able to bounce back. Hence forth, it is likely to face
resistance at the Rs 560 and later at the Rs 595 level. The Rs 491
level is likely to act as an important support level.
HCL Technologies
The HCL Tech stock moved in a range of Rs 37.80, touching an intra-day
high of Rs 165 on April 10 and an intra-day low of Rs 127.20 on
April 11. The Rs 150 level is likely to act as a resistance level.
On the downside, the Rs 126 level is likely to act as an important
support level.
Infosys Technologies
This stock moved in a range of Rs 1,800, touching an intra-day high
of Rs 4,100 on April 10 and an intra-day low of Rs 2,300 on April
11 (post results). On the upside, the Rs 3,070 level is likely to
act as a resistance level. On the downside, the Rs 2,653 level is
likely to act as an important support level.
NIIT
The NIIT stock moved in a range of Rs 14.20, touching an intra-day
low of Rs 94.60 on April 11 and an intra-day high of Rs 108.80 on
April 15. On the upside, the Rs 106 level is likely to act as a
resistance level. On the downside, the Rs 96 level is likely to
act as an important support level.
Satyam Computer
The Satyam stock moved in a range of Rs 49.40, touching an intra-day
high of Rs 176.55 on April 10 and an intra-day low of Rs 127.15
on April 11. On the upside, the Rs 173 level is likely to act as
a resistance level. On the downside, the Rs 144 level and later
the Rs 130 level are likely to act as support benchmarks.
Wipro
Wipro moved in a range of Rs 377.60, touching an intra-day high
of Rs 1,209.70 on April 10 and an intra-day low of Rs 832.10 on
April 17 (post results). The disappointing results could increase
the selling pressure on the stock. On the downside, the Rs 800 level
is likely to act as an important support level. On the upside, it
is likely to face resistance at the Rs 981 level.
View the STRATSTAR
FUND WIZARD BUY/SELL REPORT FOR 21/04/2003
| The Nasdaq continued to move in an extremely
rangebound trend. The index struggled to move above the 1426
level. This level continues to remain an important resistance
level. If the Nasdaq moves above this level and stays above
it for 12 trading days, then it is likely to test the1464 level.
On the downside, the 1351 level is likely to act as an important
support level. |
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